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. Last Updated: 07/27/2016

Production Drop

The increase in industrial production for 1996 which was predicted during the drafting of the federal budget "will be hard to achieve," said Economics Minister Yevgeny Yasin at a press conference. According to the ministry's statistics, there will be a drop in industrial production of 2 to 4 percent by the end of the year.


Yasin said that because of the drop in production in the first half of 1996, the Economics Ministry has already corrected its prognosis regarding the main macroeconomic indicators for this year.


According to the minister, the reasons to blame for the Economics Ministry's original prognosis not being fulfilled are: an increase in arrears, the destabilization of the government securities market, a drop in investment, a contraction of the internal market's capacity and, "possibly the most important factor -- the enormous influence of politics (or to be more precise, the upcoming elections) on the economy," which, as the minister himself admitted, was not expected ...


The minister then went on to the question of "what is to be done?" Sources for additional budget revenue Mr. Yasin sees include an intensified battle with companies not paying their taxes ... the enforcement of government decisions on regulating the alcohol market ... strengthening control on the collection of customs duties on imported automobiles ... and the reorganization of duties levied on chelnoky [shuttle traders] ("we're not talking of increasing the taxes, just changing the order in which they are levied")...


The Economics Ministry believes that these measures will bring an additional 3 trillion to 4 trillion rubles to the budget every month ...