This country can keep the inflation in check by controlling the monetary basis and the money in circulation through the Central Bank and the Stabilisation Fund, which have all necessary tools for the task. Administrative moves will be welcome, too. "The fewer bureaucratic obstacles we have the more we shall monetarise our economy and the closer we shall tie up the money in circulation," said Mr. Kudrin.
Public confidence in the rouble is among principal factors of impact on the inflation. Present-day trust in the rouble has not come down, or has even increased, even though rouble deposits are dwindling, he remarked.
As his ministry's statistics have it, last year's private exchanges of roubles into foreign moneys exceeded reverse deals by US$6.6 billion. A respective figure for January-June last was $2.7 billion. Now, the exchanges have balanced out.
Flat social taxation rates will come down next year to offer another 0.4-0.6% increase of the gross domestic product, which is forecast at 6.3%. The ceiling social tax rate will decrease from current 35.6% to 26%, as of January 1, 2005.
The reduced tax is expected to send capital investment 1.3-1.5% up, internal corporate funds 6.11%, and capital profitability 1.2%.
The Finance Ministry forecasts a 22% increase of the labour remuneration fund, reduced social tax considered.
