Translated material
Positive parameters
German Gref will read a report about everything at the government
Today's government meeting will open with an unusual report, delivered by Economic Development Minister German Gref. The report will include literally everything: the results of the first half of the year, the final forecast of socio-economic development for 2007 and the next two years, the federal target and investment program. Despite the scope and breadth of the topics, the government apparatus believes that Mr. Gref, as an experienced minister, will cope with the report in due time. Moreover, no one has any questions about the results of the first half of the year - all the parameters are positive. Even inflation was lower by 1.8% compared to the same period last year and amounted to 6.2%.The country's economic forecast, according to a senior White House official, has undergone "significant changes." Growth rates increased to 6.6% of GDP in 2006 and 5.9% in 2007. The average oil price increased to $65 per barrel in 2006 and to $61 in 2007. Several departments made comments on the forecast. The Ministry of Economic Development and Trade's main macroeconomic competitor in the government, the Ministry of Finance, is especially harsh in assessing the reality of the forecast. According to the financial department, with high rates of inflation, growth in the money supply and the strengthening of the ruble, it is impossible to reach the planned parameters. The Ministry of Health and Social Development reproaches the Ministry of Economic Development and Trade for the fact that the indexation of payments to public sector employees is calculated according to the lower level of inflation - accordingly, there will not be enough money. The agency proposes to recalculate indexation based on a price increase of 19%. The Ministry of Agriculture is demanding compensation due to rising prices for the services of natural monopolies. The government apparatus indicates a slight increase in growth rates (0.2-0.3% of GDP), and is also trying to assess the efficiency of government activities.
Moreover, in the government apparatus, which traditionally does not get along well with Mr. Kudrin’s department, for the first time in recent years they support the claims of the Ministry of Finance to the MEDT regarding investment expenses. Here they believe that the additional 100 billion rubles required by Mr. Gref. investments in 2007 do not yet have sufficient justification. Not to mention 2008-2009. So the dispute between the Ministry of Finance and the Ministry of Economic Development and Trade continues. And not only in terms of investments, but also in terms of the volume of government borrowing.