Alfa-Bank called measures to support the economy insignificant
The measures to stimulate the financial sector by the Russian government account for only 0.3% of GDP, according to the analytical summary of Alfa Bank. The authors argue that the government followed a strict economy in allocating support.
Analysts noted the difference between the promised amount of support and the actual one. According to the Ministry of Economic Development, funding figures are 1.8% of GDP, which is 2 trillion rubles in monetary terms. The Ministry of Finance, in turn, declares support in the amount of 2.8% of GDP, and together with the financing of systemic enterprises and state support for the budget deficit, the amount may grow to 6.5% of GDP.
These discrepancies in figures don’t look strange, since in March the government planned to offset costs through a new tax on profits from deposits, the authors of the review report. But as amendments to tax legislation were introduced, the measures were changed. As a result, income taxes on deposits will be levied only if the rates on deposits exceed the refinancing rate. Also, the norms for obtaining credit holidays were introduced. For example, concessions on mortgage loans will be allowed provided the loan size amounts to 1.5 million rubles, although the national average is 2.2 million
As a result, only 0.3% of GDP of the promised funds was spent on stimulating the economy, the rest of the funds are presented in the form of tax and credit breaks. The document also says that measures to support the economy in Russia are inferior in volume to other countries. In addition, in 2008, the government supported the financial sector by 5.2% of GDP and as a result was among the states that provided the largest support packages.
The United States supported the financial sector by 11% of GDP, Germany by 4.9% of GDP, and Russia also lagged behind Brazil and Chile. Among other things, the majority of central banks have lowered the refinancing rate, while the Russian regulator has left it unchanged.