VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
The opening remarks by Vladimir Putin:
Good afternoon, Ladies and Gentlemen,
Yesterday the government reported on its performance in 2010. It also unveiled a series of new initiatives aimed at modernising the economy and infrastructure, supporting the Russian agro-industrial sector, and opening up new development areas. Major education projects were launched, and the need for adopting similar decisions on culture was discussed. In effect, the government outlined a programme of action for the upcoming period and reiterated the principles of its work and priorities: unconditional fulfilment of the state's social commitments, adjusting the state apparatus to serve the interests of the people, and providing support for their civic and business initiatives. Today I would like to thank all the parliamentary parties once again for the open and straightforward dialogue.
I want to remind you that at the end of 2008 and in 2009, during the peak of the crisis, when the economy of our country and its social sphere were going through an extremely difficult period, in addition to successfully dealing with the problems as they arose and facilitated recovery, developing and implementing anti-crisis measures, we also launched large-scale projects of major importance in the social sphere.
In 2009, along with the anti-crisis measures, we also drafted the principles of a pension reform. In 2010, the reform was launched with a substantive improvement in the pensioners' incomes following the valorisation of their Soviet-era pensions. Last year, in addition to formulating and initiating the pension reform, we also drafted the principles of healthcare modernisation and are now starting to put them into practice. This year, we set out the principles of support for the school system and are getting ready to start implementing them at the end of the year. I will expand on this a bit later.
All these programmes should get off to an early start. Today we are going to discuss amendments to the federal budget and submit them to the State Duma. They concern almost 420 billion roubles to be additionally contributed to the achievement of key objectives. I will mention a few figures. First, 128 billion roubles is being allocated for social issues, including the provisions for yet another indexation of work pensions, for the scholarship fund and for housing for Great Patriotic War veterans – there will be more money additionally allocated for this purpose. As much as 2.5 billion roubles will go into expanding the savings and mortgage system in the armed forces – thus increasing the number of programme beneficiaries by over 11,000. Over 3 billion roubles will be provided for the purchase of equipment for the disabled. We discussed this issue with deputies yesterday. A total of 3.7 billion roubles will be set aside for restoring cultural monuments – naturally, this is only a one-off measure. I ask the Ministry of Culture, as well as other ministries and regions, to submit their proposals shortly concerning comprehensive support for Russian culture, its museums and libraries. All of this was discussed in detail in parliament yesterday.
Next, over 180 billion roubles will go to support the real sector of the economy, industry and agriculture. A Russian Direct Investment Fund is being set up to attract foreign capital. The government will assign over 62 billion roubles out of additional revenues to help establish it. The next meeting of Vnesheconombank's supervisory board is to approve the structural pattern and regulations for the company that will be managing the Fund.
We will allocate an additional 13 billion roubles to assist the agribusiness, including 9 billion for pig and poultry breeding.
An additional 5 billion roubles will be provided for the car scrappage programme. We know that this programme is very effective, but the money is running out and so we have agreed to allocate additional funds for it. I hope they will suffice for implementing the programme this year. Overall investment in the [car scrappage] programme will thus exceed 30 billion roubles.
And lastly, we will increase financial assistance to the regions by more than 54 billion roubles, including 20 billions to be allocated this year to support schools. In all, federal allocations for the school project will reach about 120 billion roubles within the next two academic years.
The project stipulates strengthening the common educational space and creating well equipped training centres and their branches. The point at issue concerns modern education, which needs modern equipment for distance learning, as well as the goal of raising teachers’ incomes. As we have agreed, I am now asking the Education and Science Ministry to submit corresponding agreements with the regions on the delimitation of responsibilities and funding under the programme by August 1.
Another priority addressed in the report concerns the problems of medical interns and resident physicians, and primarily their scholarships. This is an acute issue, which we discussed with representatives of the medical profession at a recent meeting in Moscow. Today we plan to approve a draft law streamlining the payment of scholarships to medical interns and resident physicians.
As a result, just as we promised and as we said at the meeting with the medics, their scholarships will be raised by over 100% on June 1, 2011, to reach the average subsistence wage in Russia, or 6,367 roubles a month. This is not much, as you know, but it is much more than the 2,700 roubles they receive now.
Ladies and gentlemen,
During my report in the State Duma, people asked me detailed questions about the supply of medicines to disabled people, utility fees, suburban rail transportation, fire-fighting equipment, as well as several other important questions.
I am asking you to draft a complete list of instructions on the results of the report I made in parliament and to submit it for signing.
Mr Volodin (Vyacheslav Volodin, Deputy Prime Minister), the government’s Executive Office must do this very quickly.
And here is one more issue I’d like to speak about today. During the meeting of the Government Presidium on April 14, we discussed the issue of financing the resettlement of families of the miners who died in occupational accidents in Vorkuta and Inta.
We have agreed that half of the necessary funds will be allocated from the federal budget and the other half will be provided by the employers. We plan to allocate 116.2 million roubles for this purpose from the federal budget today in the form of subsidies to the Komi Republic.
Mr Sechin (Igor Sechin, Deputy Prime Minister), I am asking you to monitor the transfer and use of these funds.
And lastly, our agenda today includes one of the most important and basic economic documents: the development scenario for the Russian economy for 2012 to 2014. It is used for calculating the budget, state programmes, large infrastructure projects and the like. Russian businesses and foreign strategic investors use it as a guideline when formulating their business plans in Russia. Therefore, all indicators in that scenario must be absolutely realistic and balanced, and all calculations precise.
It should be said that the scenario is based on conservative assessments of the global situation, in particular global oil prices. So far, we proposed basing the 2012 budget on the average annual oil price at $93 per barrel, which will allow us to create a safety margin in the budget and protect it against price fluctuation risk.
As for such parameters as the GDP growth rate, I suggest that we consider the matter again in summer, when we will be able to adjust it based on the results of economic development in the first six months of the year. That is what we agreed on yesterday evening, or rather night, and I propose that we confirm our decision today.
The same goes for the services of natural monopolies: electricity, natural gas and rail transportation. So far, they plan to raise these fees at a slightly steeper rate than inflation.
Let’s return to the discussion we held yesterday. We plan to use these calculations as the basis. However, I think it would be necessary to instruct the Ministry of Economic Development to continue this work jointly with branch ministries and corporations, as well as the Ministry of Finance, to determine a formula in which the fees [of the natural monopolies] will not grow faster than inflation, that is, by 5% or 6% on average.
The [Economics] Minister proposed this yesterday. I am asking you to thoroughly consider this proposal and the possible consequences of such a decision. We will take the final decision later. This work must be completed within six weeks and its results submitted to the government alongside the specified forecast indicators.
I’d like to say once again that the issue of fees should be considered very carefully, in a balanced way and with due regard for the interests of the economy as a whole.
Of course, the infrastructure should be radically modernised, there is no question about it. Fees should also include funding for modernisation. At the same time, the growth of fees must not suppress economic activity in the country, or create problems for industry and small and medium-sized business.
We must take coordinated and thoroughly considered decisions based on a clear and effective balance [of interests]. I am asking you to consider the matter carefully jointly with your colleagues, including from the branch departments, and submit your conclusions to the government.
