PREMIER FRADKOV DUBS TARGETS SET BY PRESIDENT AS PRACTICABLE

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MOSCOW, June 9 (RIA Novosti) - Prime Minister Mikhail Fradkov sees targets set by the president as quite practicable. The realistic assignment of doubling GDP by 2010 is viewed by Fradkov as a quantitative index which ought to be hit.

"As to steadying the economic growth, I would not be that certain about my forecast," the premier noted in his interview to the Rossiyskaya Gazeta, published on June 10.

In its socio-economic forecast and budget estimates for 2005, the government wants to take into account present-day reality but without setting too low a ceiling, he said.

"Naturally, we shall have to make a strenuous effort to meet this challenge. But we realise we have to comply with the task by all means, by mustering the potent reserves of economic growth," said the prime minister.

Fradkov reported that 2005 budget estimates would be considered at the nearest government session.

"We shall look for additional resources and we shall simultaneously observe macroeconomic parametres, which is essential for building up the country's stability and investment attractiveness," continued the prime minister.

"We have begun tackling social problems, which calls for a deeper insight into and adjustment of economic policies. We have got quite a definite reason for this-the process of forming new budget estimates," he noted.

For instance, benefits and their replacement by monetary compensation call for a more detailed discussion as regards the distribution of budgetary funds." "One should see to it that higher spending in the social sphere will not be followed by a drastic price-rise and deterioration of macroeconomic indices," said the head of government.

According to Fradkov, 28 bills concerning an improvement in living standards have been already submitted for Duma consideration and are expected to be taken up in the near future.

"Improvement of health and education standards to be in compliance with world practices will be under review at several major conferences with the participation of the public and experts. On the other hand, market mechanisms should be introduced to step up incentives and make the available capacities better targeted," said the premier.

"Improvement of educational and health services will not only add up to social well-being, which we are badly in need today, but will enhance our competitive status in this area. That is why they are defined as our priorities, virtually as our national programme," said the prime minister.

Fradkov does not say that making the ruble convertible within two years is an easy task. "We shall have to see and specify whether the convertibility issue will have to be restricted to ruble accounts within the CIS environment or whether it will spread beyond the CIS confines," he said.

The prime minister referred to administrative reform as a long-playing record. "On having outlined executive structure on the federal level, we shall have to turn to the regions. Not taking a closer look at the executive in the regions for the time being, we should streamline inefficient regional bodies of federal ministries with swollen personnel, often duplicating the work of local power," said the prime minister.

"The task has been set and we are getting down to its implementation. Ministries, agencies and services are being restructured, appointments have been made but the scheme of their cooperation has not yet been accomplished," reported Fradkov.

The premier noted that the programme for economic development did exist irrespective of changing prime ministers. "There is naturally the desire to make corrections and meet the challenges of today," concluded the premier.

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