Rustam Minnikhanov Provision of sustainable growth of economy is the most important task for all spheres

On 17 February, speaking at the end-of the year collegium of the Ministry of Economy of the republic, Tatarstan President Rustam Minnikhanov said that provision of sustainable growth of economy is the most important task for all spheres and municipalities of the republic. To ensure this, the ministries must analyze the reserves for economic growth of every enterprise in detail, he said.

Before the meeting, Minnikhanov walked around the exhibition of projects from Tatar entrepreneurs and most popular tools of developing business.

Speaking at the meeting, he reminded that stimulating investments activity was the central macro-economic task for all levels of power.  “Last year enterprises and organizations of the republic received about 650bn roubles of profit and I ask directors and owners of our enterprises to keep these finances in Tatarstan and use them for launching investments projects and increasing competitiveness of your produce, ‘-he said.

Tatarstan President drew attention of the meeting participants to the fact that the competition for investment was growing among Russia regions and the industrial sites of the republic must answer the investors’ requirements related to the speed of taking decisions, decreasing the number of administrative procedures and to infrastructure and resources.

He said there were serious reserves for economic growth in municipalities and “this year’s aim is to reach the number 800 000 people working in SMEs. At the same time there are some regions which do not pay considerable attention to these issues.”

Another reserve for economic growth of the regions is industrial parks as their residents make about 10 percent of the industrial production. More than 7 000 jobs were created in 2021, the park residents have all necessary conditions such as tax benefits and construction loans. However the survey results in 9 regions showed that their parks do not comply with necessary requirements and their residents cannot use the state support, Minnikhanov added.

Tatarstan President also mentions tax arrears of enterprises which was 8.5bn roubles as of January 1.  He gave an errand to sectoral ministries together with the Ministry of Finance and Ministry of Economy of the republic to solve the case with every and each enterprise in debt.

In his report Deputy Prime Minister of the republic Midkhat Shagiakhmetov, who is the regional Ministry of Economy, said that 2021 was characterized by return of the economy of the republic and the country to the pre-pandemic level and the GRP reached 3 trillion 354bn roubles with growth rate of 103.8 percent. Main factors of the economic growth were the launch of new industrial capacities, growth of petrochemical, chemical and machine-building products manufacture and well as the step-wise increase of oil production.

He informed that the main municipalities making contribution into the added value formation were Kazan, Naberezhnyye Chelny and Almetyevsk and Nizhnekamsk.

Having reminded that the Russian President set forth a task of providing the investments into the main capital assets of no less than 70 per cent compared to that in 2020, Shagiakhmetov said that in Tatarstan the investments growth rate was 104.5 per cent or 680bn roubles in 2021 and the task for the current year is to provide no less than 104.7 per cent.

He also said that human capital was one of the most important factors of the sustainable social and economic development and in 2022 as much as 29.4bn roubles will be allocated on implementation of the national projects most of which will be used for capital construction and road infrastructure.

The Minister underlined that more than 40 percent of people working in the economy are employed by SMEs and in 2021 their number was more than 625 000 which was by 6 per cent more than in 2020.

To decrease administrative barriers 120 regional and municipal services, 80 of which are services for entrepreneurs, were  transformed into e-form , he concluded.