Tiraspol, 28 June. /Novosti Pridnestrovya/. The chairman of the government, Pavel Prokudin, delivered a government activity report for 2015 to the Supreme Council. According to Pavel Prokudin, the government's work was influenced in 2015 by difficult political and economic factors: such a negative factor as Prudnestrovie's unrecognised international status was coupled with economic problems in the states which are Pridnestrovie's traditional trade partners, which resulted in loss of markets, decline in price competitiveness both at home and abroad and considerable losses incurred by the depreciation of the national currencies of the countries importing Prindnestrovian goods.
«The combination of the above factors has a serious impact on our country's economy. But at the same time, amid a severe budget deficit we managed to retain our manufacturing potential, the social orientation of our domestic policy," said Pavel Prokudin. According to him, in this difficult conditions the government had to make, among other things, unpopular decisions, but they all aimed to lessen as far as possible the effect of both domestic and foreign crisis phenomena on Pridnestrovian citizens.
«It should be emphasised that socio-economic stability as a whole was maintained in Pridnestrovie. We finished 2015 by repaying pension debts. We maintained stability in the monetary sphere by preventing the depreciation of the national currency, which directly influenced the living standards of, first of all, socially vulnerable groups of citizens, which were no lower than those at neighbouring countries," said Pavel Prokudin.
The prime minister reminded MPs that last year public service tariffs were reduced by 7%. To minimise the negative implications of the influence of external factors on the country's economy, the government worked out a plan for additional anti-crisis measures. «When implementing this plan, we were taking measures to develop foreign trade relations, ease administrative procedures for businesspeople working in Pridnestrovie," said Pavel Prokudin. Also the government worked out and submitted to the Supreme Council a draft law «On certain additional governmental measures aimed at minimising the negative influence of external economic factors», which has been considered and approved this year.
The government gave special attention to the implementation of import substitution programmes. Seasonal and special customs duties were imposed on some categories of food products to protect the domestic manufacturer. A registry of Pridnestrovie's business entities producing import substitution goods with which state-run enterprises can conclude tender agreements was compiled.
According to Pavel Prokudin, considerable attention was also given to the support for industrial enterprises. «The aggregate amount of assistance provided in 2013−2015 totalled 2.5 billion roubles.» said the prime minister. Natural gas prices for industrial enterprises were reduced thrice last year. Also in 2015 the key documents — the Concept for industrial policy for 2015−2019 and the Concept for small business development for 2015−2020 — were developed and began to be implemented. The legal base aimed at implementing the law «On state-private partnership» was finalised.
«To develop a competitive environment in the sphere of cashless payments in Pridnestrovie, the government together with the central bank carried out a great deal of work to implement the National Payment System," added Prokudin. According to him, over 25,000 NPS cards were issued during the year under review.
The prime minister stated that the negative economic processes had resulted in a 27% reduction in consolidated budget revenues as compared with 2014. «One of the main ways of balancing the budget was making a number of managerial decisions reducing consolidated budget spending," said Pavel Prokudin.
He reminded lawmakers that in the period under review the government made an unpopular decision, though determined by objective factors related to the shortage of budget revenues, to finance public sector wages and pensions at amounts proportional to incoming receipts. «This measure, however, allowed us to finance the above social protection items in proper time and secure the financing of other, but equally important social spheres, such as nutrition, medications, maintenance of ambulance stations and orphanages," said the prime minister.
He added that despite low revenues at all budget levels, the government managed to retain the payment of pensions and allowances in full volume for a number of the most vulnerable categories of citizens.
«It should be specially emphasised that pension debts were paid off in full volume," noted Pavel Prokudin.
According to him, a tax reform could level out the existing economic situation. «We started this work back in 2013 and in 2015 we worked out and submitted to the Supreme Council a Concept for budgetary and tax policy for 2016 and mid-term perspective and a draft Tax Code. Unfortunately, these documents have not been considered up to now," said Pavel Prokudin.
In this connection, according to the prime minister, the authorities should work out a consolidated decision on this issue. Pavel Prokudin noted that the government plans to make «all possible efforts aimed at supporting social and economic stability in the country, applying the experience accumulated in the difficult year of 2015, principles of constructivism, social responsibility and in close cooperation with all public authorities and business community».
«In conclusion, I'd like to say the following: today all branches of power must pursue the only goal — to achieve economic stability and development — and go hand in hand to this goal, leaving behind personal ambitions and interests," concluded the chairman of the government.
