Putin: Russian economy gradually restoring, not stable yet

MOSCOW, Sep 28 (PRIME) -- The Russian economy is gradually overcoming decline, but positive trends are not stable yet, President Vladimir Putin said Wednesday at a meeting devoted to budget issues.

“The macroeconomic situation remains uneasy, the Russian economy is gradually overcoming decline, but positive trends are not stable. I will emphasize: we must ensure such macroeconomic conditions, which stimulate growth of the national economy and retention of inflation slowdown trends. It is necessary to reach inflation of 4% in the medium term,” he said.

Russia should focus on the fulfillment of social obligations while preparing the budget for 2017–2019, Putin said.

“It is necessary to pay the biggest possible attention to budget planning, focus on the fulfillment of social obligations, continue work on raising the efficiency of budget spending in the social sphere. They should be more targeted, as we said on numerous occasions, and effective,” he said.

Russia should also continue its strategy to decrease budget dependence on oil prices, the president said.

“We must continue the plan to reduce the federal budget dependence on oil prices, improve the administration and raise collection of taxes and other payments, especially value-added tax (VAT) and customs payments,” Putin said.

Measures to increase tax collection should not put pressure on business, he added.

The budget should also assume all necessary funds for priority projects in the housing and utilities sector, road industry, the healthcare and education sectors, support of small and medium-sized enterprises, among other industries, Putin said.

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