Do you have a plan, Mr. Mishustin, or is it all just a bunch of mumbo jumbo?

in #ru4 years ago

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So, yesterday, June 2, Mr. Mishustin presented the government's plan for Russia's recovery from the economic crisis. In reality, only a few people saw it, but the "target" was hit - articles have already appeared in the controlled media, where it is called the "national plan for economic recovery", "plan to restore the income of Russians", etc..
Mr Mishustin has clearly recovered, he is feeling well and is optimistic. "On the sidelines", he said that "... implementation of the plan will not only reverse the situation created by the spread of the new coronavirus infection, but also begin to implement long-term structural changes in the economy". Mr Mishustin promises to return the economy "to active growth by the end of 2021". Immediately, one remembers the unforgettable slogan of the Stagnation period: "The five-year plan in two years!".

The size of the document is impressive: 9 sections – almost 500 initiatives. The length of the document hints at the Napoleonic plans of Mr. Mishustin. By the way, if you look at our prime minister this way, you can find something in common with the late Bonaparte. If it were not for the statesman's mind and ability to think strategically, then the obvious ability to stay afloat, as well as the similarity to the figure of the Frenchman - would be completeness and awkwardness. In the meantime, the whole country still hopes that the "Mishustin Plan" is as effective as the "Marshall Plan" of June 5, 1947 for the restoration of Europe. Is it truly fitting that Mishustin offered his handiwork with a difference of three days?
The ideas of the famous American economist included not only the direct transfer of $13 billion to countries whose industries and infrastructure were destroyed by the war, but also the control that they go not into the pockets of government officials and nouveaux riches, but actually work to restore the war-torn economy, modernize the old industry and build new factories, eliminate currency, customs and other trade barriers between countries. Marshall did everything to create a unified European market. All that is good in the European Union is largely made by his ideas.
Effective measures, monitoring and targeted use of funds led to the successful implementation of the plan. In a very short time – just three years, a significant part of the economy of 17 European countries was restored. And a few years later, Europe was able to pay off external debts, including debts under Lend-lease, restitution or reparations. The middle class – the guarantor of sustainable economic development and a stable life – was restored.
Of course, all of us, despite the constant disappointments of the past 20 years, still expect something like this from the president and the government. I’ll have to disappoint you: the bureaucratic splendor of the document does not make it a masterpiece of economic thinking. "The Mishustin Plan" will not exactly go down in history as a plan to save Russia.
Although, those who made the document do not only "wish to reverse the situation created by the spread of the new coronavirus infection, but also to start implementing long-term structural changes in the economy", their proposals will not stop the ongoing collapse of our economy.
Of course, the "Mishustin Plan" can not be called 100% stillborn, but it is absolutely not adequate for the existing situation. Or can a document stating that the fall in "real disposable income of the population by the end of 2020 will be 3.8%", and "the basic annual average unemployment rate is expected to be at 5.7%" be adequate?
Outright nonsense! We’re talking about now, when a mass famine has begun in Russia and tens of thousands of people are ready to work for food, like it was immediately after the war in Western Europe!
Mr. Mishustin, are you sure you've recovered?!
Let's look at the stated tasks and ways to implement them.
The indicators of the plan performance are:

  • "Reaching sustainable growth of real incomes of Russians";
  • "Reducing the unemployment rate to less than 5%";
  • "The share of investment in GDP should have grown to 25% by 2024."
  • "GDP growth of at least 2.5% per year by the end of 2021".

The document states that it solves the task of helping some of the industries that were most affected by the "coronavirus crisis" and formed a "canopy of unemployment", as well as measures that will help return people who are "formally employed, but are on unpaid leave, temporary suspension or underemployed" to work.
And now the most interesting part - how to implement the recovery of economic demand, growth in income, and so on.

Social support

  • Starting from January 1, 2021, a new procedure for "direct payments" for sick leave and benefits to citizens with children. Allocation of additional funds in the amount of 52 billion rubles;
  • Starting from October 1, 2020, "to combat illegal pay", a minimum hourly rate will be introduced for attracting part-time employees for up to 3 months;
  • Starting from July 1, 2020, it is allowed to move public and municipal employees to remote work. For employees in all spheres, it is allowed to switch to a combined and remote mode of work without concluding additional agreements to the employment contract;
  • Starting from December 1, the introduction of "social treasury", a system to improve the targeting of social support for the population. The Ministry of Labor should establish a unified approach to determining the structure of the family and the list of income for providing social support measures. A unified register of recipients of social assistance is being created, in order to control the distribution of subsidies to the population at all levels – federal, regional, and municipal. Less than 30 years after mass computerization, this was finally taken care of.
  • Starting from December 1, 2020, the conditions for early retirement for Russians who have lost their jobs will be eased. Now they come three years before retirement age, not two.

Support for small and medium-sized businesses

  • Measures introduced during the self-isolation regime - writing off taxes from the affected industries for the second quarter, grants to pay salaries based on the minimum wage per employee, credit holidays and interest-free loan programs, 85-90% of which are either not working or unavailable for entrepreneurs who do not have the OKVED (code of the economic activity) recognized as "victims of coronavirus".
  • Refusal to index the insurance premiums of individual entrepreneurs in 2021;
  • Compensation of expenses of small and medium-sized businesses for compliance with sanitary and epidemiological requirements in the affected industries in connection with the costs;
  • "Transitional" tax regime for taxpayers who have lost the right to apply the simplified tax system;
  • Increasing the ability to use the Central Bank's fast payment system to reduce transaction costs;
  • Liberalization of the legal consequences of bankruptcy for "bona fide" individual entrepreneurs in order to facilitate re-entry into business. Now, after being declared bankrupt, an individual entrepreneur can not engage in business activities for 5 years, it has not been finally decided how much the term will decrease.

Stimulation of investment activity

  • Finally complete the creation of the "protection and promotion of capital investments" mechanism, which has been going on for several years
  • Starting from July 1, 2020, compensate for infrastructure expenses and the cost of paying part of the interest on credits and loans for its creation, in the amount of incoming taxes. However, the relevant public information system for "capital investment" is meant to be created only in October.
  • Large infrastructure projects should contribute to the growth of "investment activity". For example, already existing national projects "Safe and high-quality roads" and those announced, but not yet launched, such as the reconstruction of R-255 "Siberia" for 45.3 billion rubles.

Sectoral support

  • Stimulating demand through public procurement;
  • Direct support for "systematically important enterprises";
  • Reduction of the weighted average mortgage rate to 8% due to the implementation of the mortgage subsidy program for new buildings;
  • Transfer of 30 billion rubles to finance the completion of construction of the worst sites and restoration of the rights of citizens participating in equity construction;
  • In 2020, the hotel business will be reimbursed 50% of interest payments and deferred payments of principal on previously issued loans for the period July-December. From January 1, 2021, reduce the VAT rate to 7% for travel companies.

By and large, that is all! The implementation of the "Mishustin Plan", in the modest opinion of the head of government, will ensure that by the end of 2021, the real wages of Russians will grow by at least 2.5%, and poverty will be reduced from almost 40%, compared to 2019, to 12% of the population.
We actually see:

  • The same support measures implemented during the "self-isolation regime";
  • Part of useful initiatives that simplify the life of bureaucratic structures;
  • Small new handouts for businesses in several spheres;
  • Support for large businesses tied to corrupt officials. You can read how people get into the list of "systemically important enterprises" here (link to the article "How to become a systemically important enterprise in Russia")

I do not think it is necessary to explain that these measures are not enough to boost the Russian economy, increase real incomes, and restore employment. No structural measures to support and develop the economy. What do we see? Outright government chatter that we have become accustomed to in recent years. The document transfers those decisions that were made before and during the period of "compulsory self-isolation", which then and now act as poultices for a dying person in intensive care.
You see, in the document, the new procedure for "direct payments" for sick leave and social insurance benefits paid to citizens with children, that will require an additional 52 billion rubles. This is AS MUCH AS 400 rubles for each Russian. A simply great support for the population.
No one doubts that benefits for families and the unemployed are needed, but this is only a deterrent from ruin and plunging the disadvantaged segments of the population into poverty. Yes, even such poor additional payments to families and an increase in unemployment benefits are necessary. But, first of all, they do not correspond to today's realities. Secondly, they do not replace the need for pivotal support for all types of business!
The locomotive of the Russian economy has fallen off the rails and words alone will not lift it back up. But the government doesn't seem to care. Like during the "self-isolation regime", government officials refused to help businesses and the population and left them to survive on their own.
The so-called "Mishustin Plan" is a hodgepodge of already accumulated proposals from 2019. Nothing more. It is another performance to look busy, a hope that Mr. President, like in the period of self-isolation in Novo-Ogaryovo, will not read and sign again without looking.
Maybe Mr. Putin will do so.
But I want to ask in the words of the Comedy Club host Pavel Volya on a similar situation: "Guys! Are you for real? Do you seriously think we won't notice?!"
Do you really think that people's patience will not run dry, or do you hope on the fact that Putin has got Rosgvardiya in his pocket and will be able to eliminate mass protests against poverty and hunger!?
Or have you already prepared your homes abroad for settlement?
Maybe it's time to get smart before you lose your place?!

https://corpmsp.ru/pres_slujba/news_msp/pravitelstvo_razrabotalo_plan_vosstanovleniya_zanyatosti_i_dokhodov_rossiyan/
https://www.rbc.ru/economics/02/06/2020/5ed4f9999a7947517422d4ea
https://www.rbc.ru/economics/02/06/2020/5ed4f5469a79474fd7568c3a
https://www.gazeta.ru/business/2020/06/02/13104211.shtml?utm_source=yxnews&utm_medium=desktop&utm_referrer=https%3A%2F%2Fyandex.ru%2Fnews
https://www.gazeta.ru/business/2020/06/02/13104211.shtml?utm_source=yxnews&utm_medium=desktop&utm_referrer=https%3A%2F%2Fyandex.ru%2Fnews
https://ru.wikipedia.org/wiki/План_Маршалла