General blueprints came under discussion last week. The preceding few days somewhat changed government forecasts of economic increase. Thus, a joint board session of the Finance Ministry and the Ministry of Economic Development and Trade forecast an increase of 5.8 per cent. The prognosis has become even more daring now-6.4 per cent, said President Putin to point out his satisfaction with the change.
He called the government to take flexible attitudes to the matter, and orient its efforts on practical achievements. The Cabinet is to join hands with the State Duma-parliament's lower house, and with entrepreneurial circles in search for resources to whip up progress. This is a tangible prospect as the Chamber of Commerce and Industry and other entrepreneurial leagues are willing to cooperate. "The dialogue is not to come to a standstill, let alone lose momentum. On the contrary, it is to get ever more close and dynamic," said the federal President.
In their economic scenarios, the government is not to overlook tentative fruit of a fiscal reform now underway, and not to proceed solely from world fuel and energy prices, warned Mr. Putin.
Russia has every reason to hope that ideas to streamline taxation will be implemented. If they are, federal revenues will rise roughly by 280 billion roubles. The increase must be borne in mind-apart from global fuel prices. It takes some thinking just what to spend the extra money on, and entrepreneurs need advice on how better to invest it.
To reduce taxes is not an end in itself-taxation offers a basis for economic and welfare improvement, stressed the President.
