PM: Russia may spend 300 bln rbl to fight coronavirus in 2020

MOSCOW, Mar 16 (PRIME) -- The Russian government may use 300 billion rubles of budget reserves to fight troubles linked with the spread of coronavirus in 2020, Prime Minister Mikhail Mishustin said on Monday.

“The government can use the reserves of 300 billion rubles under the 2020 budget for first priority spending to support the industries and the people,” he said, adding that the government will also extend the state guarantees.

“It is clear that healthcare is the top priority. I give an order to ensure payments for disability leaves for people in quarantine and incentive rewards for medical workers involved in prevention of the spread of coronavirus.”

Mishustin also issued an order to launch a green customs corridor for basic consumer goods from Tuesday, and to lift limits for deliveries of grocery chains in cities.

“We need to make deliveries easier both inside the country and from abroad. We will abolish restrictions for grocery retailers’ transportation in cities for a month starting from tomorrow, and will launch a green customs corridor for food and non-food products bought by retail chains and importers.”

The government has also decided to introduce delays of tax payments for the touristic and the aviation industries hurt by the spread of coronavirus, which may later be expanded to other industries.

Mishustin also said that he made a decision to close the border with Belarus to restrict movement of people in light of the virus situation.

Russia has previously closed borders or introduced restrictions on travel with a number of countries, including China and some European states.

Vedomosti business daily reported citing officials that the government was preparing a plan to weather an economic slowdown in light of the spread of coronavirus, including a 300 billion ruble anti-crisis fund.

“A 300 billion ruble anti-crisis fund will be created, among other things thanks to optimization of budget spending. These are additional funds to the spending necessary to implement the entire plan,” the daily quoted an official as saying.

The plan also envisages monitoring of Russian regions’ labor markets to prevent a rise in unemployment and additional state loans for economic development plans of regional governments, the daily reported.

(73.1882 rubles – U.S. $1)

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