Point of View

“We also have a system of patents for small businesses. The entrepreneurs who purchase patents at fixed prices will be free to do business with a minimal level of accounting standards and other administrative burdens and barriers. This fiscal arrangement is the most convenient for business, and so deserves to be expanded.”

“Last but not least, educational, research, cultural and healthcare non-profit organisations should be exempted from the profit tax, which will give them considerably more leeway to do their jobs. And in future, we may transfer some budget-funded contracts to NGOs. Experience has proved that this measure encourages competition to provide public services and improves such services.”

“We have innovative businesses that even a small increase in taxes could force to cut back on development. We are willing to keep their premiums at 14%, which is practically what they pay now. We should also re-examine the official list of industries eligible for this privilege. On the whole, we should pay the most attention to high-tech industries, with their unique products.”

“Companies switching to new energy-saving equipment will be entitled to more incentives, and may even be exempted from property taxation for three years.”

“The burden on payrolls will increase next year. This will certainly be the most acute problem in the near future. As you know, we have decided to increase mandatory social insurance payments. Otherwise, it would have been impossible to achieve financial stability in the pension system while raising the older generation's living standards at the same time. However, we have put off a tax increase due to the economic crisis. This year premiums will remain frozen at 26%. We must find resources so we can increase the financial burden gradually over the course of next year.”

“Also, macroeconomic stability, low inflation, affordable credit, a reasonable budget deficit at certain stages and a good balance between debts and reserves all play a tremendous role in creating a friendly investment climate. I believe it may even possible to increase these reserves to some extent, considering the current rise in petroleum prices. To sum up, we should take a comprehensive view of the situation. Such an approach helps us to avoid diffusing funds too much or making promises we cannot fulfil. We have another objective: we should structure our efforts so as to fund priority projects and at the same time preserve a sustainable macroeconomic environment, thus guaranteeing the macroeconomic stability of the budget and the entire national economy.”

“We will also launch a fundamentally new federal targeted programme for the comprehensive modernisation of housing and public utilities, which will complement the efforts that the Housing Reform Promotion Fund started several years ago. Naturally, this programme will not just be about major housing repairs. Significant renovation of utilities networks is also necessary. Moreover, this renovation should not only be undertaken in emergencies and should involve modern technology, materials, energy-efficient equipment, private investment and concessions.”

“Turn to federal targeted programmes proper. They account for a sizeable portion of the national budget. In particular, 740 billion roubles have been earmarked this year to develop advanced technology, build up social and transport infrastructure, solve housing problems and enhance security. The federal targeted programmes for 2011 will certainly address these obvious priorities.”

“Forecasts for social and economic development and basic budget indices should be based on conservative and realistic estimates that take into account all possible risks, particularly unpredictable fluctuations in global markets for oil, metals and other basic Russian exports.”

“We need to prepare in advance for the entry into force of the law altering the status of public institutions, which envisages fundamentally new approaches for preparing and executing of budget expenditures. In particular, the usual estimates will be replaced by measures such as targets in education, healthcare and other public services. These targets will be used not only to determine how much funds are allocated but also to set requirements for the scope and quality of work. The purpose of these changes is to provide healthcare, education and the services of our entire public sector to citizens by providing an incentive for careful attention to people's needs and demands.”