An effective budget policy is a help for Russia's exit from the economic crisis, considers professor of the Financial University under the Government of the Russian Federation Alexander Safonov.
The Federal Tax Service is actively fighting the consequences of the crisis
Russian President Vladimir Putin met with the head of the Federal Tax Service (FTS) Daniil Egorov.
Tax policy is of the utmost importance for Russia. At first, due to a decrease in export revenues from hydrocarbons, and secondly, due to fiscal consolidation, meaning the constant updating of the main financial document of the country.
The meeting was timed to coincide with the 30th anniversary of the formation of the Main Tax Inspectorate within the Soviet Ministry of Finance.. This structure is the ancestor of the modern Federal Tax Service, which became the main fiscal department of the country.
Three factors influence the Russian tax direction. The first of these is the decline in oil revenues., associated with falling prices on the world market and restrictions on production, which Russia took over under an agreement with OPEC +.
According to Egorov, the decrease in the revenue base of the consolidated budget of the Russian Federation is 11%, the peak falls in the second quarter 2020 years and equals 26%. Total income of the Federal Tax Service for ten months 2020 years were 16,9 trillion rubles.
The agency plans to enter 2020 year 20,5 trillion rubles of revenues of the consolidated budget of the Russian Federation, which is ten percent less than 2019 of the year. It's tolerable, although do not forget about the exchange rate of the ruble and the inflation rate.
The stability of oil and gas revenues made it possible to achieve such success in the global crisis.. in rubles in 2020 year they can be even higher, than in 2019 year. The monetary reduction of the budget revenue base occurs in other directions.
Business support for the sake of employment affected the volume of income tax payments and insurance premiums. By Putin's decision, for small businesses, the tax burden was reduced from 30 to 15%. It concerns 74% Russian organizations.
However, the Income Tax Federal Tax Service collected a total of four percent more money., than in 2019 year, and remained in the black on insurance premiums.
In difficult conditions 2020 the Federal Tax Service seriously supported business. Digitalization helped the department to issue salary subsidies in the amount of 91 billion rubles. Blockchain platform deployed, thanks to which the business received 500 billion rubles of concessional loans. The Federal Tax Service also cooperates with the banking sector, to facilitate the process of lending in Russia.
The agency returned the self-employed, paid by them in 2019 year tax payments, reduced checks business. If in 2010 year, the Federal Tax Service conducted 70 thousand field inspections per year, then by 2020 year their number is nine thousand.
Russia found itself in a difficult budgetary situation
“The federal budget is seriously affected by the economic crisis and losses, caused by the coronavirus pandemic. To date, they have reached a maximum for Russian finances., Safonov concludes..
At the same time, these trends have hurt the income of the population of the Russian Federation and many areas of economic activity..
“If there was no stoppage of production and business, then we could have a different picture. There is a strategic problem, associated with a change in the volume of consumed energy resources. These trends depend not only on the "coronacrisis", but also from other points, including the replacement of pipeline gas with liquefied natural gas in the European market”, Safonov sums up.
Don't Forget Green Projects, creating big risks for the Russian energy industry. This situation directly affects the economic planning of the Russian Federation., taking into account the share of oil and gas revenues in the budget.
In reality, this is expressed in the cuts in most budget expenditure items, except for the social sphere., defense and other urgent areas, and under the knife in the first place go basic investment projects.
In a crashing economy, the crisis of small business and the decline in global energy consumption, there is nowhere to get new budget revenues from Russia - an increase in personal income tax for people with incomes over 5 million rubles is a cosmetic solution. Reduction, consolidation, efficiency of spending funds - we have before us forced measures of the Government of the Russian Federation.
“The United States is actively using the issuance policy in order to, to support business and overcome crisis cycles, and in Russia they took the path of cutting budget spending. These funds remain the only source of support for the economy to boost and smooth economic cycles.”, - Safonov states.
There are different opinions on this, but in Moscow they decided not to use public debt to overcome the crisis.
"For, so that we can enter a new economic trend and gain perspectives, Russia needs to update the economy. When will this happen is the question., but, at least, not in the next two years, Safonov concludes..
Difficulties create huge social spending - the President and the Government of the Russian Federation will never give up on them. This topic is not only part of the political program of Russia, but in the summer it was included in the Constitution of the Russian Federation.
Because of this, the reduction in government spending mainly concerns investments in the real sector of the economy..
“It is impossible to oppose the development and provision of the social sector. This is a classic misunderstanding of economic processes.. The development of the economy and the change in its structure does not mean a reduction in spending on social purposes, which are also support for the new image of the national economy. This education, health, demand and the fight against poverty, Safonov sums up.
This is what should become the basic elements of the new Russian economy..
Dmitry Sikorski
