The budget policy of Russia for 2019-2020
In the budget policy of the Russian Federation for 2019-2020, there is an installation to minimize government spending and correctly use the taxes received in order to maximize the country's economic development. This task should not be hindered by either external or internal factors. But, most likely, in order to ensure the necessary amount of funds in the budget, some social programs will have to be closed.
External factors affecting the budget policy of the Russian Federation
In the near future, external factors affecting the Russian economy may deteriorate significantly due to new sanctions. Also, the ongoing discord between Iran and the United States can affect the Russian economy in 2019-2020. Which will lead to a collapse in the cost of oil in the market, which means it will significantly slow down the growth of the economy in the country.
Having studied all the negative factors regarding the budget, the Government of the Russian Federation decided to engage in internal reforms in order to avoid the intervention of external factors on the economy in the period 2019-2020.
The current sanctions have significantly reduced the possibility of borrowing funds from foreign partners. Consequently, "patch holes" in the budget of the country will have to do it on our own.
Moreover, if the oil price falls, then covering the budget deficit will be very problematic, since there is no possibility of lending from outside.
For the next 2019-2020, the main direction in the budget policy of the Russian Federation is the creation of conditions under which the Russian economy will cease to depend on external factors. It was decided, in this case, to focus on the development of its own domestic market and on supporting medium and small businesses.
Domestic market development, prospects
Analysts suggest that in 2019 Russia will experience a slight economic downturn. This means that foreign investors will not risk investing in Russian enterprises, because the economic trend will not be understood. Consequently, consumer demand will fall by 1-1.5 percent. People will buy less goods and services, which in turn will affect the turnover and income of enterprises.
However, experts say that already at the beginning of 2020, the economic situation is adapting to internal conditions:
- enterprises will become more attractive to individual investors, which will increase the number of investments in GDP to 25%;
- the state will directedly distribute budget funds to create favorable conditions for the development of small business;
- in the country will have a little change tax policy. But in this case, the state will have to give up tight control in the field of small and medium-sized businesses, so that subjects independently make important decisions, without involving government agencies.
Changes in tax policy in 2019-2020
In order to maximize the implementation of fiscal policy in Russia, it will be necessary to soften taxation and make some changes regarding private business.
Entrepreneurs of small and medium-sized businesses are directly involved in the formation of a certain part of the budget. They help create new jobs, manufacture products or provide services to the public. It is such entities that clearly fulfill tax obligations, from which then funds go for the implementation of state programs 2019-2020.
But due to tight policies and relentless control, some of the small and medium enterprises remain in the shadows. Consequently, the RF budget does not receive enough tax payments from such a business. Therefore, the government decided to review the current fiscal policy in relation to private business and create more favorable conditions that allow shadow enterprises to go out and formally register with state bodies. Most likely, the Government of the Russian Federation will reduce tax rates and (or) cancel at all or part of fiscal fees.
New Enterprise Support Program
Today, the authorities are not trying very hard to support new enterprises in order to expand the segment of private business. But there are still some positive changes, for example, to simplify the work, unified customs bases are being created, and other innovative technologies are being introduced to facilitate the work of entrepreneurs.
Also, new enterprises will be provided with a “start 0” benefit, which means that when registering a business electronically, you will not have to pay duties.
From the video, find out what changes are planned in the tax policy of the Russian Federation for 2019-2020: