Government will try to save Russia from recession in view of coronavirus

New anti-crisis plan for big business

World economists expect a new recession in the global economy by mid-2020 — the statistics of the Chinese economy turned out to be the worst in 30 years. The US Federal Reserve launched emergency market support measures worth $ 1.5 trillion, but this could not stop the collapse. The main goal is to reduce interest rates in order to increase the volume of lending to businesses. Governments around the world are taking steps toward special economic regulation to mitigate market shocks. Similar measures are being taken in Russia. Which and in whose interests?

Falling quotes in financial markets
Falling quotes in financial markets

A package of anti-crisis measures is already being prepared by the Government of Russia, according to Vedomosti and Kommersant. The plan involves substantial cash injections; within its framework, it is planned to create an anti-crisis fund of 300 billion rubles by optimizing budget expenditures.

  1. Compensation for quarantined workers at the expense of sick leave or covered by the employer.
  2. Possible payments to the unemployed as a result of monitoring the situation in the labor markets.
  3. Costly procurement of materials to create test systems for the detection of coronavirus.
  4. Tax holidays for business, at least for tour operators and airlines.
  5. SMEs receive quarterly deferrals for tax payments.
  6. Deferred tax payments for six months for state-owned companies in the interests of shareholders.
  7. Permission to indicate coronavirus as the reason for late execution of the state contract.
  8. Regions that can successfully cope with plans for the development of the economy in a difficult period will have the opportunity to get loans from the budget.

The capitalist economy is particularly unstable during a crisis associated not only with the coronavirus, but also with the volatility of oil prices. The head of the Ministry of Finance, Anton Siluanov, said that the pandemic will affect the economy more significantly than a drop in oil prices from $50-60 to $30-35 per barrel.

The virus is affecting all world markets, raising panic for shareholders and causing huge losses. Anti-crisis measures carried out by the largest economies in the world are aimed, first of all, at maintaining their own large business and financial markets. Even assistance to the unemployed is described as “possible” in most sources, but we can speak with confidence about the multibillion-dollar tax support of state-owned companies.

The state is expected to act in the interests of large owners, while the world is being shaken by the horrible epidemic.