Decree on targeted social assistance and economic efficiency signed

28 февраля 2016

The decree 78, as a comprehensive economic program, has been painfully worked out in the past 2 months. The government proposed large-scale privatization or cutting social benefits as a panacea. The President persisted to defend the welfare state and his election program.

It is necessary to spare money but at the expense of authorities and businesses, not ordinary people. The decree 78 embodies this basis completely.

The key figures in the decree are about the ways of making money and saving revenue, especially foreign currency earnings.

The first goal is cost reduction by a quarter. Avoidable expenses can be found everywhere: from the warehouses to production shops.

The second goal is ensuring 50 thousand productive jobs in private small and medium businesses or in state-owned corporations. The main thing is to make a competitive product, to sell it preferably abroad, to substitute import or to provide a service.

All new projects, including services (transport, logistics, insurance) must bring at least $ 600 million in revenue per year. This figure is import substitution. If we keep the currency in the country, we will not have to cut the state program.

Another goal in the Decree is the refund for the supplied export. By the end of the year it should be no less than 100 million dollars. It is work for sales managers, lawyers and government. After all, money is not returned mainly by CIS partners.

Businesses will be supported by strong antitrust protection of the market, simplified and equal access to the Chinese credit, phased reduction of interest rates and payment of interest on a competitive basis through the Development Bank.

The decree stipulates reaching a 50% refund of real and transparent public utility tariffs, targeted social assistance and compensation for those who find it difficult to pay for public utilities: single pensioners, large families, people with disabilities.

By June 1, a new complex human resources policy will have been developed: from training and bonuses to stripping unnecessary bureaucratic functions and removal from office.