Russian Premier Sums Up Results Of Ten Months Of 2001 In Russia

Chairman of the Russian government Mikhail Kasyanov cited economic results of the first ten months of this year as a proof testifying to the expediency of principles of the government's financial and economic policy. He said this while speaking to State Duma (lower parliamentary house) deputies Friday. According to Kasyanov, favourable trends manifested in past few years have been continued largely owing to "radical transformations ensured by the government with the help from the State Duma, which passed the required draft laws." First of all, this refers to tax system, banking and currency legislation, customs issues, land tenure, debureaucratisation of the economy and ensuring investors' and creditors' rights. Work on the judicial reform continues and understandable conditions for economic management are expected to be created, Kasyanov said. Many changes in these directions "won't produce immediate effect, it should be expected in the near future, however, already now fruits of a number of transformations are on hand," Kasyanov said. First of all, the lowering of general taxation was compensated by the expansion of tax base and allowed to stage tax reform without losses for the federal budget. The government expects that the lowering of profit tax will also bear its fruit soon. According to Kasyanov, over the past 18 months the general collectibility of taxes increased 50 percent despite the lowering of tax rates.