Page 5 - RusRPTDec19
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The spending on the national projects is going too slowly, but President Vladimir Putin said at an investment conference that budget implementation is definitely better than the use of funds allocated for national projects (NPs).
Preliminary data shows that only 64% of funds allocated for NPs have been spent, which is an issue that needs to be addressed The problem is that a very large part of funding allocated for national projects comes from federal sources, while most of the money is to be spent in the Russian regions. This means that since day one, both the Government and the regional heads had to better coordinate their efforts. Now, their interaction is improving. President Putin said that the goal is not to spend money whatever it takes.
The spending must yield results. The result should be reflected in faster economic growth, higher labour productivity, better quality of labour resources, and ultimately, these efforts should have an impact on people’s well-being, leading to growth in their real incomes. The President added that to raise the required amounts for NPs, the Government even had to increase the VAT, and it is therefore extremely important for there to be certainty that the money raised for national projects is spent efficiently.
5 RUSSIA Country Report December 2019 www.intellinews.com
