Minister of Economic Development and Trade of Russia German Gref (center)
Photo: Alexander Miridonov
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Administration Gives Account for Not Heeding President
// Protocol
Yesterday at a meeting of the administration an account was given of fulfillment of presidential assignments. Minister of Economic Development and Trade German Gref reported that the tasks have been fulfilled by 75 percent, which mean almost ahead of schedule. But it was admitted that the administration's main tasks, holding down inflation and ensuring the necessary growth rate of the GDP, were not fulfilled. Gref emphasized the successes, saying that performance in 2005 was much better than in previous years. Russian President Vladimir Putin's message to the Federal Assembly practically turned into direct orders this year. His April 25 address was doubled by a May 11 list of 15 tasks for the administration. The impression was made that the successes were impressive, especially considering that they were complicated by the appearance of the national projects.
The main task, doubling the GDP and fighting poverty, is not going well, however. Finance Minister Alexey Kudrin noted hat the administration has no strategy for social development other than presidential directives. Pensions and the salaries of government employees were raised this year, however, although the benefit of those increases was offset by inflation. Gref noted one more shortcoming. “The performance of the tax organs is one of the substantial elements that discredits the attractiveness of Russia,” he said. “The tax organs frequently make fines ad penalties that are greater than a company's annual turnover.” The president had instructed the tax bodies to cease “terrorism.” An amendment to the Tax Code control tax audits has passed its second reading in the Duma.
The project to repatriate capital is also behind schedule. Gref said that a draft law for that purpose is to be presented to the cabinet of ministers by March 1, 2006.
Petr Netreba
All the Article in Russian as of Dec. 23, 2005
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