The Ministry of Finance may become the main center of economic planning in Putin's cabinet
At the beginning of the week , the government took on a new form , and some ministries lost some of their names and powers. Among them is the Ministry of Economic Development and Trade, which lost trade and henceforth became the Ministry of Economic Development instead of the Ministry of Economic Development and Trade. As a consolation prize, Rosstat, Roskadastr and Rosregistration were transferred to the Ministry of Economic Development. But the Ministry of Finance does not need any consolation - it, apparently, has received the challenge banner of the state's chief economic strategist.
Alexey Kudrin quite expectedly retained the positions of Minister of Finance and Deputy Prime Minister. After the resignation of German Gref from the post of Minister of Economic Development and the promotion of the head of the financial department to Deputy Prime Minister in September last year, nothing could stop him on the path to “domination” in the sphere of Russian state economic policy. The troubles with the arrest of Deputy Finance Minister Sergei Storchak and the publicly negative reaction of the minister himself only allowed Mr. Kudrin to secure his status as a responsible and principled leader who has nothing to hide.
The new Minister of Economic Development and Trade, Elvira Nabiullina, did not have sufficient apparatus weight to resist the old-timer of the Cabinet of Ministers, Alexei Kudrin. And here is the result: trade was taken away from the Ministry of Economic Development and Trade, in addition, the department received an almost personal overseer in the person of First Deputy Prime Minister Igor Shuvalov. Among other things, he is entrusted with overseeing international relations, foreign economic activity and foreign trade, including accession to the WTO, the development of competition, the activities of natural monopolies, antimonopoly and tariff policies, and the management of federal property. That is, almost all issues related to the prerogatives of the Ministry of Economic Development.
It is not yet clear who will receive the laurels of the final formulation and execution of the Concept 2020 . The initial version was written at the Center for Strategic Research, which was then headed by Ms. Nabiullina. Then the Ministry of Economic Development and Trade took over this document, and it was its officials who submitted all versions of the “Concept” to the government. But, according to some visible signs, coordination of work on this program may well fall to the Ministry of Finance.
Representatives of the Ministry of Finance recently stated that financiers should prepare the main forecast indicators for the budget, but let long-term forecasts of socio-economic development remain with the Ministry of Economic Development and Trade. But at the end of April, shortly before the change of government, the Ministry of Finance prudently created three new departments in its structure. It is already known that one of them will be called the long-term planning department. It was headed by Oksana Sergienko, who previously worked as deputy director of the financial policy department. The Ministry of Finance justified the need to expand the number of departments with new tasks facing the ministry, namely the development of three- and fifteen-year budgets. But, apparently, the old functions of the MEDT will be added to the new tasks. Moreover, budget planning for 15 years in advance can hardly fundamentally contradict the provisions of the “Concept 2020” - after all, the innovative breakthrough promised to the country must be financed.
After the distribution of powers of deputy prime ministers in the government of Vladimir Putin, it became known that Alexey Kudrin will oversee the development of the main parameters of socio-economic development, the implementation of a unified financial monetary policy, financial planning, the state budget, investment policy and public debt management. And among the priority government tasks voiced by Vladimir Putin, many fall directly under the jurisdiction of the Ministry of Finance. In particular, the preparation of bills related to the development of the financial market and tax system.
Previously, some of these issues fell under the direct responsibility of the old MEDT, for example, investment policy. And there would be nothing strange if Deputy Prime Minister Kudrin kept an eye on the activities of the economic ministry. But, as has already been said, most of the economic issues under the jurisdiction of the new Ministry of Economic Development fell under the supervision of First Deputy Prime Minister Shuvalov. Of course, it would be more convenient for Deputy Prime Minister Kudrin if all areas of his responsibility in this rank were transferred to his direct subordination as Minister of Finance, especially since there are no other supervisors over the Ministry of Finance. But it seems that the only person in the government, not counting the prime minister, with whom the Ministry of Finance will have to coordinate its forecasts is Igor Shuvalov.