Russian Economy News: The government will save not all

Wednesday, July 22, 2015

The government will save not all – BBC

The government has no funds to support all single-industry towns, Dmitry Medvedev acknowledged. Instead of allocating funds authorities suggest creating on their base territory of priority development. Pour money Russian company towns – is methodically tightening the noose around the neck of city residents, experts say.

Prime Minister Dmitry Medvedev admitted that money to support all the government does not single-industry towns. “Money for all company towns in crisis category, no” – he said during a working visit in mono Sibirskoye.

In order to support these agglomeration, Putin proposed to create a “one-company towns on the basis of the territory of priority development (Torah).” “To consider an application from the regions on the establishment of such areas will be a special commission. And of course, preference will be given to projects that stimulate not only the discovery of certain industrial sites, as the revival of investment activity in general, whether it be the old production, new industries, small and medium businesses, “- said Prime Minister, speaking Wednesday at a meeting in Usolye Siberian Irkutsk region.

The mechanism of implementation of tori in depressed monocities starts this year, Medvedev said.

The company towns is home to nearly a tenth of the population of Russia, that is, about 14 million people.

According to the calculations Prime Minister, all these cities in Russia 319. “And I must say frankly that only 71 of the city socio-economic situation can be called stable,” – Medvedev admitted.

The need to diversify the economy of single-industry towns, moving away from single-industry local tax base the government realized in 2014. Then it was created Development Fund for one-industry towns. According to the plans of the authorities fund will act as a project office for the implementation of investment projects in single-industry towns, enhance the investment attractiveness of the problem areas, approve plans to diversify their economies and create jobs.

There were three groups of single-industry towns: the crisis, at-risk and relatively stable. Criteria monotown again clarified: the population – at least 3 thousand. People employed in one enterprise – not less than 20% of total employment. But talk about a trillionth the support does not go.

In the crisis of 2008-2009, the government allocated to support single-industry towns 40 billion rubles. Now the fund promised 30 billion rubles. from the budget. Last year the fund received 3 billion rubles., That he had to list five cities problematic category. This year, according to Economic Development Minister Alexei Ulyukayev, allocated $ 4.5 billion for one-industry towns, for 2016-2017 – for 10.8 billion rubles.

«The total amount of more than 29 billion rubles. Money is quite large, it is necessary to make effective use of this work has already begun: 11 single-industry towns have signed a general agreement on three single-industry towns began co-financing “- Ulyukayev said on Wednesday.

The first positive results Ulyukayev expects to see the end of this year. The second tool resuscitation “City Zero” – tax breaks designed for the same tori. According to Ulyukayev, the territories of priority development tool is slightly different from that box, which was created first for the Far East.

Fill money Russian company towns, as does the Russian government with the crisis of 2008-2009, but rather with a memorable Pikalevo – is methodically tightening the noose around the neck of city residents, said Nikita Isaev, director of the Institute of Contemporary Economics.

«As for tori is not apparent economic project of state, designed for the needs of the Far East, largely aimed at a political effect, in order to avoid economic and political exclusion of the territories of Russia Baikal” – said Isayev.

Tax credits depressed regions, of course, will not prevent a recognized expert. The current tax system is both horizontal (the amount of taxes, levies, duties, etc.), and vertically (the system of intergovernmental relations between the federation, regions and municipalities) probably sharpened by a stable economic system than the developing economies. And therefore in need of modernization.

And to solve the problem of single-industry towns using resettlement programs are not very effective, although such programs are hotly debated.

«When the organized mass resettlement of citizens problems of a political nature. Any process in a democratic state should be of natural character. Any artificial resettlement characterized harsher political systems, whose experience is largely condemned by the world community “, – said Isayev.