Russia does not plan massive support of individuals or SMEs

Economic recovery will cost the government about RUR 8 trn ($113 bln), however, there are no massive support plans for individuals or SMEs in the pipes, Vedomosti business daily reported.

The state economic support program envisages government expenditures and lost revenues in the amount of RUR 6 trn. Another 2 trn will be invested in infrastructure projects included in the government draft economic recovery plan. The program is planned for 2020 and 2021.

As for SME support, the program only stipulates a few relaxed regulatory requirements.

The government plans to channel only RUR 180 bln ($2.5 bln) for additional individual social payments (i.e., about 0.2% of GDP). According to the authorities, the support should be targeted rather than massive.

On the other hand, Germany has allocated about 30% of GDP to support its citizens, and the United States, over 12%. Economists fear that weak support could delay Russia’s exit from the crisis.

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