Russia’s government has approved a 648.8 bn ruble ($9.3 bn) anti-crisis plan for 2016 to prop up the ailing economy. Russian Prime Minister Dmitry Medvedev said that he had endorsed the plan consisting of 120 steps. Meanwhile, the economy has been surviving low oil prices, a national currency collapse, and Western sanctions. Russia’s economy shrank 3.7% in 2015. To make things worse, it is set to a second year of recession in 2016. The top priority of the rescue plan is to sustain a decent living standard and welfare of Russian nationals and to fulfil social commitments of the government.
Interestingly, the Kremlin makes some efforts to encourage consumer spending with the new plan whereas earlier versions suggested a more aggressive approach. So, the rescue plan sets out 120 steps. One of the directions is urgent measures to stabilize the social-economic environment. The other direction is to implement structural measures to ensure steady social-economic development. The government pledges to be alert to any signs of a looming economic crisis, to provide food safety and social stability. Small and medium-sized businesses are also on the agenda. Besides, the government aims to create conditions for sustainable economic growth in the medium term.
To sum up, well begun is half done. The anti-crisis plan seems to be well-grounded. Time will tell whether it is actually efficient.
