Moscow (RIA Novosti political commentator Yana Yurova) -- At the outset of his annual address to the Federal Assembly, President Putin suggested that his previous addresses and the current one be viewed as a single program of action.
Does this mean that no serious changes in political life are likely and that all the crucial ideas have already been set out in previous addresses? It appears that the answer is "no".
Obviously, the president laid out his most revolutionary program back in 2003 when he declared that GDP had to be doubled by 2010 in the drive against poverty. Putin reiterated and developed this major social and economic goal in his current, sixth address. For example, he proposed that in the next three years public sector wages be increased by 50% to reach the national average, because out of the 18 remuneration ratings 12 are below the subsistence level. He made one more proposal that concerns everyone's money: to abolish the tax on inherited property. In addition, Putin suggested using budget funds to promote and develop healthy way of life in the country, while he also stressed the need to attract investment into education, culture and medicine.
But at the same time the president spotlighted a task that was not so obvious in the last few years, notably, the need to attract investment and thereby improve the business climate in Russia. Indeed, the president himself and his associates have repeatedly raised this issue on different occasions this year.
A proposal was made some time ago to reduce the statute of limitations on minor transactions, in particular with regard to privatization deals, from 10 to three years. As 10 years is too long, it creates a host of uncertainties for businessmen. Now the president has reiterated this idea and even criticized the government for being slow to respond.
The address contained some wordings that were obviously prompted by Putin's meetings with Russian businessmen. This was particularly evident in the idea that clear rules of the game in business needed to be established. If in his previous addresses Putin merely declared this idea, this time he put it onto a practical plane. Putin raised questions that are being discussed by the public at large. He stressed the need to facilitate privatization procedures whether in real estate or land, and to encourage people to invest the money they saved in previous years in the national economy.
The president did indeed set out clear rules for the influx of capital. There should be only two provisions for this: the funds should be invested in the Russian economy and income tax should be paid at 13%.
He took a similar approach to tax problems. There is only one condition: businessmen should abide by Russian taxation rules.
Vladimir Putin believes that precise rules are also required for private investment from abroad. "Investors do not need charades," he said and proposed adopting in the near future a law clearly stating in which businesses foreigners would not be able to invest under any circumstances. In all other cases the state should not create obstacles to private enterprise.
