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 RUSSIA IN FACTS
23 April 2004 17:51
Russian premier says it is time to offer realistic social package to society
[Presenter] The government is set to halve the number of the poor in Russia in the next three years. This plan was announced by Prime Minister Mikhail Fradkov at a meeting at the Chamber of Commerce and Industry. He met representatives of small and medium business. According to sociologists, 30m citizens in Russia, in other words one in five, live below the poverty line. Aleksandr Ruvinskiy has the details. [Correspondent] The government chairman had his first meeting with business representatives not so long ago at the Union of [Industrialists and] Entrepreneurs at which mainly big companies were represented. Today there was a wider audience, mainly small- and medium-size enterprises. It is by their efforts that the task of doubling Gross Domestic Product is to be achieved. In his speech, the chairman of the government, Mikhail Fradkov, said he had a desire to communicate with entrepreneurs through dialogue more often. And the aim is to ensure qualitative changes in the economy. This is the government's intention. We can miss an opportunity to revise our actions, and the trends of the first quarter revealed some problems. Mikhail Fradkov set the task of moving to orientated management on the basis of chosen priorities aimed at increasing competitiveness. Speaking about the responsibility of the government for social policy, Mikhail Fradkov said: [Fradkov] In our view, the time has come to offer society, instead of promises of, by definition, unpopular reform in the social sphere, a concrete and realistic social package, including the most important social services in the housing, education and health spheres. The key thing here is that the package should be acceptable to both the population and business, as well as the state. [Corespondent] One should get away from a rigid differentiation of incomes. Changing taxation in the raw-material sphere will make it possible to partly solve this problem. But the main way, according to Fradkov, is increasing productivity. Speaking about tax policy, Mikhail Fradkov stressed that the government did not intend to change the income tax rate. For the time being it is proposed to focus on improving the single social tax.
[Radio Mayak]
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