Crisis bailout plan will help us

The Government of the Russian Federation in response to complicated macro economic conditions has developed the crisis bailout plan, which was announced on the 28th January 2015. Sanctions, deterioration of the pricing environment on the commodity markets, devaluation of the ruble, accelerated inflation and the slowing of the GDP growth, push the Government to decrease expenses for business and population, provide sustainable economic development and social stability support.

According to the crisis bailout plan, the expenses on the majority items of the 2015 federal budget will be cut down by 10%. Within the following three years the State expenditure should be reduced at least by 5% per year in order to reach the budget balance by 2017. It is supposed that the reduction of the expenses will be provided first of all by the elimination of the inefficient costs. For example, expenses on the operation of the government authority will be cut.

According to the plan, the fulfillment of the social obligations is promised to be provided, that will require additional budget allocations. Besides, it is agreed not to reduce the costs on provision of defense capability, supporting of agriculture and fulfillment of international obligations. The realization of new investment projects will be put off and the released resources will be concentrated on the completing of the unfinished projects. 

In accordance with the plan, the State support programs in Russia will be extended on wider range of enterprises of small and medium business, than it is allowed by the current rules. This will happen due to the dual increase in the extreme value of the annual revenue from the sales of goods and services. The extreme value is a criterion for reference of the enterprise to the category of micro, small and medium enterprise. The increasing in the extreme value of annual revenue will allow to transfer about 8 000 enterprises to the category of small business; now they are formally considered as medium.  In particular, because of that more companies will be able to participate in the public procurement. 

Besides, as it is said in the government crisis bailout plan, the right to reduce rates for the taxation in the form of unified imputed income tax for a certain types of activity from 15% to 7,5% was acquired. Territorial entities of the Russian Federation will also be able to reduce the income tax from 6% to 1% for the enterprises, applying the simplified system of the taxation, and the right to reduce twofold the maximum amount of the potential annual income of the individual entrepreneur from 1 mln. RUB. to 500 000 RUB.