The meeting was attended by Prime Minister Mikhail Mishustin, Chief of Staff of the Presidential Executive Office Anton Vaino, First Deputy Chief of Staff of the Presidential Executive Office Sergei Kiriyenko, First Deputy Prime Minister Denis Manturov, Deputy Prime Minister and Chief of the Government Staff Dmitry Grigorenko, deputy prime ministers Tatyana Golikova and Marat Khusnullin, Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin, Minister of Economic Development Maxim Reshetnikov, Finance Minister Anton Siluanov, Central Bank Governor Elvira Nabiullina, Chelyabinsk Region Governor and Chair of the State Council Commission on the Economy and Finance Alexei Teksler, Moscow Mayor and Chair of the State Council Commission on Public and Municipal Administration Sergei Sobyanin, and Head of the Federal Tax Service Daniil Yegorov.
* * *
President of Russia Vladimir Putin: Good afternoon, colleagues.
The Government continues to draft the federal budget for the next three years.
In this regard, we are holding a series of meetings to discuss the country’s main financial document and its key priorities. Yesterday, Mr Mishustin and… Or, was it the day before yesterday?
Prime Minister Mikhail Mishustin: It was late night.
Vladimir Putin: At night, we discussed all these issues at length as well, probably, for two hours.
These issues include fulfilling social obligations, funding national projects, and ensuring Russia’s security.
Importantly, the budget is designed to address current and long-term strategic development national goals. Therefore, drafting and implementing the budget is a whole-of-Government effort that combines the efforts of the federal Government, ministries and agencies, and management teams in the constituent entities of the Federation and municipalities.
Clearly, the stability of public finances and the successful implementation of planned projects and programmes directly depend on the economic situation. The main goal, which is to ensure the necessary growth rates, has been outlined.
We must keep up with the global economy and strive to outpace its dynamics by unlocking the potential of our industries, regions and territories, expanding ties with our international partners, widely introducing advanced technology, and working effectively in promising innovative areas of the modern economy.
To achieve this goal, we need to mutually coordinate fiscal and monetary policies, and use them, primarily, to support and promote growth. You may recall that I mentioned this back in June at the St Petersburg International Economic Forum.
However, last year we discussed the developments in our economy and agreed that there was need to take the necessary measures to curb inflation and to strengthen macroeconomic stability. We agreed that this would inevitably cool the economy and, as we said back then, ensure its soft landing. The general opinion was also that we must walk this sharp edge and not to undermine the macroeconomic policy, not to overcool the economy, and not to freeze it. We discussed these issues with the Russian business leaders and various business associations.
What are we seeing now? According to the Ministry of Economic Development, in July, gross domestic product added 0.4 percent in annual terms and in the seven months of this year GDP grew by 1.1 percent. The question is whether this is enough. Is that what we wanted? Are we succeeding in achieving the goal that we set for ourselves? Or, do we need to act differently at a faster pace, naturally, while ensuring macroeconomic, inflationary stability and taking into account the balanced policy of the Central Bank.
The inflation trend is quite clear: in July, consumer prices grew by 8.8 percent and in August by 8.1 percent. The inflation drop trajectory is below the forecasts provided by the Government and the Bank of Russia.
In other words, the efforts to lower inflation are effective. It is very important for moderate prices to have a positive impact on business and investment activity, allowing for more dynamic and sustainable growth.
Without a doubt, special emphasis must be placed on improving the quality of the domestic economy, and combatting the shadow sector and tax evasion, which will not only promote a fair and healthy competitive environment and create transparent conditions for business and entrepreneurship growth, but also generate additional federal budget revenue. We will discuss these approaches today as well.
Let’s get to work. Anton Siluanov has the floor. Please, Mr Siluanov.
<…>