Coronavirus disaster not as dangerous for Russian economic system as 2008 monetary crash – Alexei Kudrin to RT

The Russian economic system is coping higher with the Covid-19 pandemic than it did after the worldwide monetary disaster, the pinnacle of Russia’s Accounts Chamber and ex-finance minister, Alexei Kudrin, stated in an unique interview with RT.

Whereas no nation on the planet was ready for the pandemic, Russia rose to the problem pretty nicely, Kudrin stated. The nationwide economic system continues to be set to face harsh financial penalties, and will plunge between 4 and 5 %, however that drop continues to be much less dramatic than forecast in earlier gloomy predictions, he defined.

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“The present financial scenario is actually higher than predicted at the start of the pandemic,” Kudrin informed RT. “For various causes, Russia now seems significantly better than in 2009, when the economic system fell by eight %.”

He famous that, in contrast to within the earlier financial downturn, the present disaster has pressured many firms to shut. That’s why Russian companies, the vast majority of which didn’t obtain any substantial authorities assist, and the Russian folks now want extra assist, Kudrin pressured. On the similar time, extra help might be needed if the second wave of the coronavirus outbreak results in new restrictions. 

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“The variety of folks dwelling in poverty has elevated by greater than 1,000,000 in the course of the first half of 2020,” stated Kudrin, including that this determine at the moment exceeds 20 million. “The federal government must take measures to scale back poverty and assist folks. [It] has the funds to do it.”

He instructed the federal government may make an exemption to the rule that requires any tax revenues earned from oil costs over $ 42 a barrel to be paid into Russia’s Nationwide Welfare Fund. In line with the official, if the federal government spent a 3rd or perhaps a half of its welfare fund reserves, this might not be crucial amid such unprecedented situations.

In line with Kudrin, the pandemic has not fully modified Russia’s plans for the Worldwide Group of Supreme Audit Establishments (INTOSAI), of which it assumed the presidency final 12 months. Over the past INTOSAI discussion board, held in Moscow in 2019, Kudrin pledged to advertise the environment friendly use of technological progress and to extend transparency in public administration.

The pandemic has pressured Russia to “make some critical changes”, Kudrin stated. He defined that the event of the so-called strategic audit – aimed toward establishing if funds spent had completed set targets – and audit digitization is now the primary activity for the physique. Russia has additionally created a particular professional committee to assist auditors from completely different nations reply to Covid-19, together with evaluating state help and different assist measures.

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