The President
of Russia delivered the Address to the Federal Assembly.
The ceremony took place at the Manezh Central Exhibition Hall.
January
15, 2020
13:15
Moscow
Before the Presidential
Address to the Federal Assembly.
About 1,300 people have been
invited to attend the ceremony, including members
of the Federation Council, State Duma deputies, members
of the Government, the heads of the Constitutional
and Supreme courts, regional governors, speakers of regional
legislatures, the heads of traditional religious denominations,
public activists, the heads of regional civic chambers
and the heads of major media outlets.
* * *
President of Russia
Vladimir Putin: Members of the Federation Council, State Duma
deputies, fellow Russians,
The Presidential
Address to the Federal Assembly is delivered at the very
beginning of the year for the first time. We need
to address large-scale social, economic and technological tasks facing
the country more quickly and without delay.
Their content
and guidelines are reflected in the national projects, whose
implementation will require a new quality of state governance
and work on the part of the Government and state
bodies at all levels, as well as direct dialogue with citizens.
Our society is clearly
calling for change. People want development, and they strive
to move forward in their careers and knowledge,
in achieving prosperity, and they are ready to assume
responsibility for specific work. Quite often, they have better knowledge
of what, how and when should be changed where they live
and work, that is, in cities, districts, villages and all across
the nation.
The pace of change
must be expedited every year and produce tangible results in attaining
worthy living standards that would be clearly perceived
by the people. And, I repeat, they must be actively involved
in this process.
Colleagues,
Russia’s future
and historical perspective depend on how many of us there are
(I would like to start the main part of my Address
with demography), how many children are born in Russian families
in one, five or ten years, on these children’s upbringing,
on what kind of people they become and what they will do
for the country, as well as on the values they
choose as their mainstay in life.
There are nearly 147 million
of us now. But we have entered a difficult, a very difficult
demographic period. The measures we took starting
in the mid-2000s have had a positive effect on demography.
We have even reached a stage of natural increase. This is why we have
more children at schools now.
However, new families are
being created now by the small generation of the 1990s.
And the birth rate is falling again. This is the main problem
of the current demographic period in Russia.
The aggregate birth
rate, which is the key index showing the number of births per
woman, was only 1.5 in 2019, according to tentative estimates. Is
this few or many? It is not enough for our country. It is approximately
equal to the figure reported in many European countries. But it
is not enough for Russia.
I can tell you
by way of comparison that the figure was 1.3 in 1943,
during the Great Patriotic War. It was only lower in the 1990s:
1.16 in 1999, lower even than during the Great Patriotic War. There
were very few families with two children, and some couples had to put
off starting a family.
I want to say once
again that we are alarmed by the negative demographic forecasts. It
is our historic duty to respond to this challenge. We must not only
get out of this demographic trap but ensure a sustainable natural
population growth by 2025. The aggregate birth rate must be 1.7
in 2024.
Demography is a sector
where universal or parochial solutions cannot be effective. Each step we
take and each new law or government programme we adopt must be
scrutinised from the viewpoint of our top national priority –
the preservation and increase of Russia’s population.
As we build
a long-term policy to support families, it must be based
on specific life situations. We need to look closely
at difficulties faced by new families, families with many children
or single-parent families.
The most sensitive
and crucial issue is the opportunity to enrol one’s child
in a day nursery. Earlier, we allocated funds from the federal
budget to help the regions create 255,000 new places in day
nurseries by the end of 2021. However, in 2018
to 2019, instead of 90,000, 78,000 new places were created, out
of which only 37,500 places can actually be provided to kids. Other
places are unavailable simply because an educational licence is still not
obtained. This means that these nurseries are not ready to enrol children.
Governors, heads
of other constituent entities, my dear colleagues, this is not how
work is done. Come on! It means we have created 77,700 places that are still
not fully available. Half of them cannot operate – and we must
create 177,300 by 2021. I am asking you to do everything
(although it will be very difficult now, however, it needs to be done)
to close this gap. Once again, we must work across all areas
of family support.
But there is a daunting
challenge that directly threatens our demographic future and it is
the low income of a significant part of our citizens
and families.
According to various
estimates, roughly 70 to 80 percent of low-income families are
families with children. You are well aware of this. It often happens that
even when not one but both parents work, the income of such
a family is still very modest.
What decisions have already
been made? From January 2020, families with incomes below two subsistence
minimums per person will receive monthly benefits for their first
and second child. Moreover, these benefits will be paid until
the child reaches the age of three rather than 18 months
as was the case before. The benefit amount will depend
on the subsistence minimum in a specific region.
The nationwide average is over 11,000 rubles per child per month. Once
again, this is an average and depends on a specific region.
Additionally, with
the support of the federal budget we have started paying
benefits for the third child and subsequent children in 75
constituent entities, now including all regions in the Urals, Siberia
and the Far East.
All of this amounts
to substantial support. But the following thought has crossed
my mind, and I believe that you also realise this. Parents stop
receiving payments when their child turns three, and this means that their
family can immediately face financial problems. To be honest, this is
happening already. We must prevent this, especially since I realise that
mothers often find it hard to combine working and caring
for their children before they start school.
We know from
the experience of our own children and grandchildren that they
often fall ill. Their mothers are therefore unable to work. In this
connection, I suggest we introduce monthly payments for children aged
between three and seven starting already from January 1, 2020.
Who will be covered
by this measure, and how is it supposed to function?
Families whose incomes do
not exceed per-capita subsistence minimum will receive these payments. That is,
it concerns families facing a very difficult situation.
To obtain these
payments, they will only have to file an application and list
their official legal incomes. I would like to note that this
procedure must become as convenient and simple as possible, so
that people would be able to apply without queuing and clearing
hurdles. Or they should do this online on the relevant state
website.
As I have already
said, incomes may vary from region to region. First stage payments will
amount to 5,500 rubles, or 50 percent of the subsistence
minimum. But that is not all. We will have to analyse and assess
the operation of this system. And we will take the next
step, if we see that some families are unable to achieve
the subsistence minimum while receiving 5,500 rubles. From 2021, we will
pay the subsistence minimum in full, or over 11,000 rubles, that
will vary from region to region. I repeat, the specific sums
will vary, but on average it will amount to 11,000 rubles per child
per month.
We will need substantial
resources for implementing the proposed measure, and we will
also have to adjust the federal budget. I ask
the Government and members of the Parliament to do
this as quickly as possible. The regions should also complete
their share of regulatory work.
What else should we do
equally quickly?
In my Address last
year I said that we should expand the system of social
contracts. It should become an individual programme whereby every
low-income family will be able to increase their income and enhance
their quality of life. Under these contracts, the state will make
regular payments to such families, finance retraining and advanced
training and help them to find employment or start a small
business.
While providing
comprehensive assistance to low-income people, society
and the state have a right to expect them to take steps
as well to deal with their problems, including finding employment
and taking a responsible attitude to their children
and other family members.
The regions are already
introducing the mechanism of social contracts. But it is not
sufficiently effective yet, and it is not helping much to fight
poverty or to increase family incomes.
Therefore, first of all
I would like to ask the Government to analyse
the experience of the pilot projects and revise
the principles of social contracts. Second, we must increase
financial assistance to the regions so that all of them
introduce this mechanism in 2021.
I would like all our
colleagues, including the regional heads, to note that we will assess
their performance not by the number of social contracts signed
but by poverty decline figures.
Colleagues,
Back in 2006,
I said the following in my Address to the Federal
Assembly: “And now for the most important matter. Indeed, what
I want to talk about is love.” It was then that I proposed launching
the maternity capital programme aimed at helping the families
that decided to have their second child.
This programme will expire
on December 31, 2021. I know than many people wonder what
the state will do after that. We will extend this programme
to December 31, 2026 at the least. We must do this without
fail. But this measure only is no longer enough.
We must support young people
who are starting their families and, I am sure, dreaming about having
children. In this sense, I would like to introduce new,
additional decisions concerning the maternity capital, which should also
come into effect on January 1, 2020.
Even when the first
child is born, the family will have the right to the full
amount of the maternity capital, which is 466,617 rubles after
the indexation in January 2020. This is the sum that was paid
when the second or the next child was born. This support will
give families a chance to prepare for the birth
of their second child.
But I believe that this
is still not enough in today’s conditions, considering the demographic
challenges Russia is facing. We can and must do even more. I suggest
increasing the maternity capital by a further 150,000 rubles.
Families will have the right to this additional money
for the maternity capital when their second child is born.
This means that
the total amount of the maternity capital for a family
with two children will amount to 616,617 rubles. It will be indexed
annually in the future.
At the same time
I believe that if a family already has a child, we must provide
the new, increased maternity capital when the second child is born,
which is, as I have already said, 616,617 rubles.
Let me add that we have
already made the decision that when the third child is born,
the government pays 450,000 rubles towards the family’s mortgage
loan. This means that overall a family with three children will be able
to invest over one million rubles to solve their housing problems
with the help of the government. In many regions, cities,
and even regional capitals this amounts to almost half
of the cost of a house or a flat.
Let me also remind you that
a reduced mortgage interest rate, six percent per year, for families
with two or more children has been extended for the entire time
of the loan, which resulted in the number of people
using this support measure growing almost 10-fold at once.
A social programme
for young families has been launched in the Far East: mortgage
loans at 2 percent interest rate. I ask the banks, and not
just the banks with state capital, to become more actively involved
in its implementation.
And here is another
highly important matter. I have already mentioned a new payment
for children aged between three and seven. But this is not all that
we can and must do. Yes, when children start attending school, their
parents, especially mothers, get more opportunities to work and earn
an additional income. However, families have to pay more
in order to send their children to school, they face extra
problems, and we have to support them at that stage.
In this connection, I suggest providing free hot meals to all
primary school students from grade one through four.
I will not conceal
the fact that we have had heated discussions on this subject.
On the whole, some colleagues do not object, but they say that it
would not be very fair that people with decent incomes and low incomes should
receive the same amount of support from the state. They are not
saying this because they do not want to support the children. Indeed,
this argument has its own logic. But there is another logic that prevails
in our society: everyone must have equal opportunities, and children
and their parents who are often demeaned by the current
situation must not think that they are even unable to feed their children.
I believe that this is
very important for our society. Yes, they tell me that these benefits were
not available even during the Soviet period, when there was large-scale
social support for the people. But there was no great social
stratification at that time either. I believe that this measure will
be justified.
In order
to provide free hot and, most importantly, healthy meals, I suggest
channelling funding from three sources: the federal, regional
and local budgets. But money is not the only thing that matters. We
need to create the required infrastructure at schools, set up
cafeterias and lunchrooms and put in place a system
for supplying high-quality food. I would like to note that this
was not done even during Soviet times, as I have already said. This,
of course, will require time. But free hot meals must be provided starting
from September 1, 2020 in those regions and schools that have
the required level of technical equipment. I ask our colleagues
to expedite this work. Primary school students must start receiving
high-quality hot meals free of charge in all regions from
September 1, 2023.
So colleagues, here is
the point I want to make, in short. I would like
to emphasise – all the steps we are taking are aimed
at creating a streamlined, large-scale and, most importantly,
an effectively working family support programme, so that people’s incomes,
especially for those raising children, are high enough
for a decent life.
Secondly, what I said
at the beginning of the Address: the steps that we
took in previous years in the field of demographic
development have already brought results. They have yielded results back then:
a large generation is growing up in Russia. I am referring
to children who are in preschool and primary school now. It is
very important that they adopt the true values of a large family – that family is love, happiness, the joy of motherhood and fatherhood, that family is
a strong bond of several generations, united by respect
for the elderly and care for children, giving everyone
a sense of confidence, security, and reliability. If
the younger generations accept this situation as natural,
as a moral and an integral part and reliable
background support for their adult life, then we will be able to meet
the historical challenge of guaranteeing Russia’s development
as a large and successful country.
Colleagues,
Supporting families
and family values is always a forward-looking strategy addressing the generations that are to live in an age of tremendous technological and social changes, and something that will determine Russia’s fate in the 21st century. So, to have these
new generations participate in creating this future even now, to have
them fully reveal their potential, we must create the necessary conditions
for them, primarily for every child in every region
of Russia to get a good education.
In the middle
of the coming decade, Russia will have about 19 million
schoolchildren, which is 6 million more than in 2010. Some say it is too
difficult to influence objective demographic processes, so it is
unadvisable to channel large resources for demographic development.
However, in reality, we can see direct evidence of the opposite:
family support policies are working, and sometimes their results even
exceed our wildest expectations. It is great that there are so many children
in our schools again. On the other hand, this situation should not
affect the comfort and quality of their learning.
I ask
the Government to coordinate with the regions, consider
the demographic and other factors, estimate how many more children
the schools need to serve, and make the necessary changes
to the Education National Project. That will require flexible
solutions: not only to build more schools, but also to efficiently
use the entire educational and other infrastructure we have
for these purposes, as well as the benefits of modern
technology for education.
Almost all schools
in Russia have internet access now. In 2021, they should no longer
just be connected, but have high-speed internet access to fully embrace
the digital transformation in national education; teachers
and students should have access to advanced educational programmes;
individual approach to teaching should be practiced to reveal each
child’s talents.
Our network
of extracurricular technology and engineering centres is developing
dynamically. Our children should also benefit from a modern environment
for practicing music, art, and other forms of creativity.
Russia is allocating more
than 8 billion rubles for equipment and musical instruments
for children's art schools as part of the Culture National
Project. But the problem is much wider. More than 1,000 art school
premises are dilapidated and not fit for use as intended.
I would like to ask the Government to help the regions
improve them. And I ask the regional authorities not
to forget that this is their responsibility.
Furthermore, a modern
school implies forward-looking teaching staff enjoying high social status
and prestige. By the middle of the next decade,
the national professional advancement system should canvas at least
half of the country's teachers, in the future including
additional professional training, along with general education workers.
Class teachers are closest
to their pupils. Their ongoing daily work including mentoring children
and teaching them the right ways is a huge responsibility,
and definitely requires special training and special support
for these mentors. In this regard, I consider it necessary
to introduce, from September 1, at least 5,000 rubles
in additional payment to them financed from the federal budget.
There is a lot
of controversy about this decision, because this is actually
the responsibility of the regions. Those present in this
room are well aware of this. But what is a class teacher?
A mentor and supervisor, and those are federal functions.
But, of course,
I would like to point this out: all current regional payments
to class teachers should continue, colleagues; I am calling your
attention to this. And I will definitely look at what will
be happening in practice, in real life.
I pointed out more than
once that the pay parameters for teachers, doctors and other
public sector employees set out in the May 2012 Executive Orders must
be strictly complied with. There is a reason why I keep returning
to this subject. If we slacken control of this matter, this will
create the temptation to neglect these provisions, as many
of those present here know. This must not be allowed. I would like
to emphasise that the issue concerns professionals working
in the spheres of vital significance for society
and the country, and they must receive good and fair pay
for their work.
The number
of school graduates will be increasing in the next few years.
In light of this, we must ensure equal and fair access
to free intramural university education. Therefore, I suggest that
the number of university scholarships be increased every year.
Moreover – what I am going to say next is very important,
the priority in this matter must be given to regional
universities, especially the regions that are lacking doctors, teachers
and engineers.
Of course, we must not
simply enrol more students but boost the development of regional
universities with support from businesses and employers.
In particular, we must strengthen their training, research and social
infrastructure, as well as improve the system of training
and advanced training of teachers for regional universities so
that students receive up-to-date knowledge and can have successful careers
in their regions.
The employment market
is changing rapidly, with new professions appearing and higher
requirements made to the existing ones. Our universities must be able
to respond to these changes flexibly and quickly. I believe
that third-year students must be offered an opportunity to choose
a new path or curriculum, including related professions. This is not easy
to do, but we must indeed do this. To ensure that talented
and decent people play a major or leading role in our
national development, we have launched the Russia – Land
of Opportunity project. Over 3.5 million people have taken part
in its competitions and Olympiads. We will continue to improve
this system.
Colleagues,
Last year life
expectancy in Russia exceeded 73 years for the first time, which
is eight years longer than in 2000. This is the result of social
and economic changes in Russia, the development of mass
sports and promotion of healthy lifestyles. And, of course,
the entire healthcare system made a significant contribution,
especially the programmes of specialised, including high-tech aid, as well
as maternity and childhood welfare and protection of health
of mother and child.
The rate
of infant mortality has reached a historic low. This indicator is
even better than in some European countries. I am well aware that
the public in many developed countries is very critical
of the state of their national healthcare system, and you also
know this. In fact, almost everywhere – no, everywhere – people
criticise their healthcare system, however well organised it looks from here.
Still our
achievements in this area show that if we set certain goals, we can
achieve results. However, let me repeat this, people do not judge
the healthcare system by figures and indicators. A person
who has to travel dozens of kilometres to a polyclinic
or spend a whole day waiting in line for an appointment
with a specialist is not very interested in how life expectancy has
grown on the average. People think about their lives, their health,
about how to get high-quality and timely medical aid without
obstacles and when they need it. This is why now we must focus our efforts
on primary care, which all people and all families have to deal
with. This is where we have the worst and most sensitive problems.
This year we are
to fully complete the creation of a network of rural
paramedic centres, as stipulated in the related national
project. This does not mean, however, that all the problems of these
rural paramedic centres have been settled. I would like to point out
that the mission of these centres is not to make out
prescriptions or refer patients to regional medical centres. Local
specialists must be able to really help people by using modern
equipment and high-speed internet. I would like to ask
the Russian Popular Front to monitor the provision
of equipment, construction and repair of rural paramedic
centres.
On July 1
we will also launch a programme to modernise the system
of primary healthcare. We will have to repair and provide new
equipment to outpatient clinics, rural hospitals and first-aid
stations in all our regions. We have allocated an additional 550
billion rubles for this purpose, more than 90 percent of which will
come from the federal budget.
At the same
time, I ask the regional authorities to find additional funds
for providing housing to doctors and paramedics,
in particular in villages, settlements and small towns,
and to use all the available instruments towards this end,
including employer-rented housing and private housing projects.
Training
and recruitment are key elements of medical education. By 2024,
all levels of healthcare, but first of all the primary
healthcare level, must have the necessary number of specialists.
In this connection, I suggest that the admission procedure
to medical universities be changed significantly. For example, 70
percent of scholarships in the field of general medicine
and 75 percent in paediatrics will be awarded to prospective
students who will return to their native regions upon graduation.
The quotas will be distributed based on requests filed
by the regions, which must subsequently provide employment
to the graduates who must be able to work where people need their
services.
As for residency
training, I suggest that almost 100 percent of scholarships be given
to medical graduates in critically important spheres. Priority during
enrolment will be given to those with practical experience in the field
of primary healthcare, especially in rural areas. This system should
be also stipulated for federal medical centres.
And lastly,
just as we agreed, a new system of remuneration will be
gradually introduced in healthcare starting this year. It is based
on clear, fair and understandable rules, with a fixed share
of salary in the overall income and a uniform list
of compensation payments and commercial incentives for all
regions.
Colleagues,
Last year life expectancy
in Russia exceeded 73 years for the first time, which is eight
years longer than in 2000. This is the result of social
and economic changes in Russia, the development of mass
sports and promotion of healthy lifestyles. And, of course,
the entire healthcare system made a significant contribution,
especially the programmes of specialised, including high-tech aid,
as well as maternity and childhood welfare and protection
of health of mother and child.
The rate of infant
mortality has reached a historic low. This indicator is even better than
in some European countries. I am well aware that the public
in many developed countries is very critical of the state
of their national healthcare system, and you also know this.
In fact, almost everywhere – no, everywhere – people criticise
their healthcare system, however well organised it looks from here.
Still our achievements
in this area show that if we set certain goals, we can achieve results.
However, let me repeat this, people do not judge the healthcare system
by figures and indicators. A person who has to travel dozens
of kilometres to a polyclinic or spend a whole day
waiting in line for an appointment with a specialist is not
very interested in how life expectancy has grown on the average.
People think about their lives, their health, about how to get
high-quality and timely medical aid without obstacles and when they
need it. This is why now we must focus our efforts on primary care, which
all people and all families have to deal with. This is where we have
the worst and most sensitive problems.
This year we are
to fully complete the creation of a network of rural
paramedic centres, as stipulated in the related national
project. This does not mean, however, that all the problems of these
rural paramedic centres have been settled. I would like to point out
that the mission of these centres is not to make out
prescriptions or refer patients to regional medical centres. Local
specialists must be able to really help people by using modern
equipment and high-speed internet. I would like to ask
the Russian Popular Front to monitor the provision
of equipment, construction and repair of rural paramedic
centres.
On July 1 we will
also launch a programme to modernise the system of primary
healthcare. We will have to repair and provide new equipment
to outpatient clinics, rural hospitals and first-aid stations
in all our regions. We have allocated an additional 550 billion
rubles for this purpose, more than 90 percent of which will come from
the federal budget.
At the same time,
I ask the regional authorities to find additional funds for providing
housing to doctors and paramedics, in particular
in villages, settlements and small towns, and to use all
the available instruments towards this end, including employer-rented
housing and private housing projects.
Training
and recruitment are key elements of medical education. By 2024,
all levels of healthcare, but first of all the primary
healthcare level, must have the necessary number of specialists.
In this connection, I suggest that the admission procedure
to medical universities be changed significantly. For example, 70
percent of scholarships in the field of general medicine
and 75 percent in paediatrics will be awarded to prospective
students who will return to their native regions upon graduation.
The quotas will be distributed based on requests filed
by the regions, which must subsequently provide employment
to the graduates who must be able to work where people need
their services.
As for residency
training, I suggest that almost 100 percent of scholarships be given
to medical graduates in critically important spheres. Priority during
enrolment will be given to those with practical experience
in the field of primary healthcare, especially in rural
areas. This system should be also stipulated for federal medical centres.
And lastly, just
as we agreed, a new system of remuneration will be gradually
introduced in healthcare starting this year. It is based on clear,
fair and understandable rules, with a fixed share of salary in the overall
income and a uniform list of compensation payments
and commercial incentives for all regions.
I am aware that
the implementation of all these goals requires extensive resources.
If you go back to where I started, every goal needs a great deal
of money. In this regard, I ask the Government to once
again consider identifying priorities for our development while retaining
the budget’s stability. This is an advantage we have achieved
in the past few years, and we must maintain it.
I know that last year
a number of regions saw a disruption in medication supplies
as the regions’ purchases were not made, with certain officials
treating it as if it were some sort of office supplies purchases
claiming it was not a big deal and new tenders would be announced.
But people were left without essential and vitally important medications.
I should point out that such cases must never happen again.
This year, efforts will be
made to launch an integrated comprehensive register
of recipients of medications that are provided to citizens free
of charge or with a considerable discount through a federal
or regional subsidy to avoid any confusion in this regard
in the future.
Also, certain legislative
decisions have already been adopted that will allow for official
and centralised imports of certain medications to Russia that
are yet to receive regulatory approval. I ask the Government
to promptly organise this work so that people, particularly
the parents of sick children, do not find themselves
in a desperate situation when they cannot legally find the necessary
medications.
Control over pharmaceutical
drugs will also significantly change. It will be tightened both
at pharmaceutical companies and during all stages of medication
circulation, including at pharmacy networks.
Colleagues,
In recent years, we have
focused on strengthening macroeconomic sustainability, and it is
something I just mentioned. The federal budget has had a surplus
again. Our government reserves confidently cover our gross external debt.
And here I am not talking about some abstract or theoretical
indicators – I would like to emphasise that these figures are
directly influencing the life of each and every person
in our country, and have to do with the fulfilment
of our social commitments. We can see the problems, even shocks that
citizens of other states face, where government had no such cash cushion
and their financial position turned out to be unstable.
The consistent work
of the Government and the Bank of Russia has led
to a stabilisation of prices. Last year, inflation stood
at 3 percent, which is below the target level of 4 percent.
True, the prices of certain goods and services have risen
slightly, but overall, I repeat, inflation is at a predictably
low level. The situation fundamentally differs from what it was five
or ten years ago, when double-digit inflation was a tax on all
citizens of the country, being an especially hard burden
for those on a fixed salary or pension – retired
people and workers in the public sector.
Now, relying
on a stable macroeconomic foundation, we need to create
conditions for a substantial increase in people’s real incomes.
Again, this is the most important responsibility
of the Government and the Central Bank. To meet it,
the national economy needs structural changes and higher efficiency.
In 2021, Russia's GDP growth rates should be higher than the global
ones.
To have this kind
of dynamics, it is necessary to launch a new investment cycle,
to seriously increase investment in the creation
and upgrading of jobs, in infrastructure,
in the development of industry, agriculture
and the services sector. Starting this year, annual investment growth
should be at least 5 percent, and investment share
in the country's GDP, 25 percent by 2024 from the current
21 percent.
What needs to be done
to encourage investment?
First of all, we agreed
not to change the tax treatment for businesses over
a period of the next six years and thus provide
a wider horizon for investment planning. The deputies
and the Government should speed up the adoption
of a package of draft laws on protecting and promoting
investment. As you are well aware, tax treatment for major important
projects should remain unchanged for up to 20 years,
and the requirements and standards for building production
sites should remain the same for three years. These investor
guarantees should become standard law.
Of course,
in addition to major projects, small- and medium-sized
businesses’ initiatives should be supported as well. Today,
the regions are entitled to provide an investment-based tax
deduction and a three-year revenue tax break, but they rarely use
them. It is clear why: they do so because regional budgets thus lose revenue.
In this regard, we would like federal funds to compensate
the regions for two-thirds of the lost revenue stemming
from the use of an investment-related tax deduction.
Second, the reform
of the oversight and supervisory activities must be completed
in 2020, and businesses should thus see improvements in their
operating environment.
Third, I have already
submitted to the State Duma the amendments to remove vague
criminal law provisions in part related to so-called frauds. Thus,
entrepreneurs have repeatedly mentioned Article 210 of the Criminal
Code, under which any company whose senior executives violated the law
could qualify as an organised criminal group, meaning that almost all
of its employees were liable. Tougher restrictive measures
and punishment were put in place. Law enforcement agencies will
henceforth be required to prove that an organisation or a company
was initially deliberately created with an illegal purpose in mind.
Fourth. It is estimated that
as soon as this summer the foreign currency reserves
of the National Welfare Fund will pass the mark of 7
percent of GDP. We have accumulated these reserves to guarantee our
stability and security, which means we can invest our additional revenue
in development and the national economy.
Cost-effective projects that
remove infrastructure restrictions for our territories must become our
priority. This includes bypass roads for big cities, arterial roads
between regional capitals and exit roads to federal motorways. These
projects will inevitably bring about the growth of small businesses,
tourism and social activity in the regions and locally.
Fifth. For investment
to grow steadily, our economy needs long-term money. We all know this very
well. This is a direct responsibility of the Central Bank.
I appreciate its consistent course for making loans
for the real sector of economy more accessible.
Of course, businesses,
companies (especially large ones) must remember about their social
and environmental responsibility. I would like to thank our
parliament members for demonstrating integrity during their work
on the emission quota law.
Obviously, it is necessary
to act upon our plans faster. Our next steps include testing
and implementing the air quality monitoring system
and subsequently expanding this control system to cover
the entire country. It is necessary to monitor not only
the condition of air but also water and soil – that is, to develop
a comprehensive environmental monitoring system.
Next. By the end
of this year, at least 80 out of the 300 largest industrial
facilities must complete the transition to best available technology
and obtain complex environmental permits, which means a consistent
reduction of hazardous emissions. Sixteen permits have been issued
as of now but overall this work is on schedule. No matter what,
we must not allow any disruptions here. It is necessary to drastically cut
the amount of waste ending up in landfills, implement waste
sorting and generally move towards the circular economy.
By 2021, we must already launch the mechanism of extended
producer responsibility when producers and importers of goods
and packaging are responsible for recycling costs. To put it
simply, contaminators must pay.
Colleagues,
I would like
to stress that Russia is ready to support Russian and foreign
scientists’ joint research on ecology, climate change, environmental
and ocean pollution. These are global development challenges shared
by everyone.
Today the speed
of technological change in the world is increasing manifold,
and we must create our own technologies and standards in areas
that define our future, such as, first of all, artificial intelligence,
genetics, new materials, energy sources and digital technology. I am
confident that we can reach a breakthrough here, as we did
in defence. I will speak about this later.
In order to solve
difficult technological tasks, we will continue to develop research
infrastructure, including megascience-class facilities. I am sure that
an opportunity to work with unique equipment and tackle
the most ambitious tasks will encourage talented young people to work
in science. This is already happening. According to estimates,
by the middle of the decade every second scientist
in Russia will be under 40.
We should give researchers,
engineers and entrepreneurs the freedom they need to do their
work and to conduct innovative scientific research. I ask
the Government and State Duma deputies to fast-track the discussion
of the technological legislative package. This year we must launch
a flexible mechanism of experimental legal modes to design
and introduce new technologies in Russia and establish
up-to-date regulation of the big data turnover.
Next, we should establish
a mechanism of social support for direct and venture
finance tools based on the best global practices.
The technological entrepreneur should have the right to take
a risk, so that failing to implement an idea will not
automatically mean inappropriate use of funds and a possible
criminal prosecution. I mean that we should establish such legal
and financial conditions that as many start-ups and pioneer
teams as possible could become strong and successful innovative
companies.
We need to support
the export of high-tech products and, of course, to boost
domestic demand for innovative products. In this context,
I believe it would be right to fast-track the digital
transformation of the real economy. A requirement should be set
that national projects are largely carried out using domestic software.
We have already put
in place, say, major digital television infrastructure, which,
in terms of its technical characteristics, is one
of the most advanced in the world. Currently,
the digital television coverage in Russia is more expanded than,
for example, in France, Austria or Switzerland.
The internet has become
a must-have for people today. Russia is one of few countries
in the world which has its own social networks, messengers, e-mail
and search engines and other national resources.
Given all the things
I’ve just mentioned, I suggest that the Affordable Internet project
be developed and carried out and that free access to socially
important domestic internet services be available across Russia. I repeat
that in this case people will not have to pay for the internet
service, for internet traffic.
Colleagues,
The high availability
of the internet should become Russia’s and our citizens’
competitive advantage and create, across the board,
an environment conducive to education, creative work, communications
and the implementation of social and cultural projects.
Of course, this means new opportunities for people to get
involved in the life of the country. We appreciate every
creative initiative of our citizens, public associations, non-profit
organisations, as well as their willingness to contribute
to national development.
It is very important that
the volunteer movement is becoming more popular, and it unites
schoolchildren, university students, and people of different
generations and ages. The Victory Volunteers project embodies
the tradition of mutual assistance and respect for older
generations and our history.
This year, we will celebrate
the 75th anniversary of Victory
in the Great Patriotic War. For Russia, May 9 is
the greatest and sacred holiday. We are proud
of the generation of victors and honour their feat,
and our memory is not only a tribute to our heroic past, but it
also serves our future, inspires us and strengthens our unity.
It is our duty
to defend the truth about the Victory; otherwise what shall we
say to our children if a lie, like a disease, spreads all over
the world? We must set facts against outrageous lies and attempts
to distort history. Russia will create the largest and most
complete set of archival documents, film and photo materials
on the Second World War, accessible both for our citizens
and for the whole world. This work is our duty
as a winning country and our responsibility
to the future generations.
Colleagues,
We can see how
unpredictably, uncontrollably events are developing in the world,
what is happening in the Middle East and North Africa literally
in recent weeks and recent days, how regional conflicts can rapidly
grow into threats to the entire international community.
I am convinced that it
is high time for a serious and direct discussion about
the basic principles of a stable world order
and the most acute problems that humanity is facing. It is necessary
to show political will, wisdom and courage. The time demands an awareness
of our shared responsibility and real actions.
The founding countries
of the United Nations should set an example. It is the five
nuclear powers that bear a special responsibility
for the conservation and sustainable development
of humankind. These five nations should first of all start with
measures to remove the prerequisites for a global war
and develop updated approaches to ensuring stability
on the planet that would fully take into account the political,
economic and military aspects of modern international relations.
Russia is ready to enhance
cooperation with all interested parties. We are not threatening anyone
or seeking to impose our will on anyone. At the same
time, I can assure everyone that our efforts to strengthen national
security were made in a timely manner and in sufficient volume.
For the first time ever – I want to emphasise
this – for the first time in the history
of nuclear missile weapons, including the Soviet period
and modern times, we are not catching up with anyone, but,
on the contrary, other leading states have yet to create
the weapons that Russia already possesses.
The country's defence
capability is ensured for decades to come, but we cannot rest
on our laurels and do nothing. We must keep moving forward, carefully
observing and analysing the developments in this area across
the world, and create next-generation combat systems
and complexes. This is what we are doing today.
Reliable security creates
the basis for Russia’s progressive and peaceful development
and allows us to do much more to overcome the most pressing
internal challenges, to focus on the economic and social
growth of all our regions in the interest
of the people, because Russia’s greatness is inseparable from
dignified life of its every citizen. I see this harmony
of a strong power and well-being of the people
as a foundation of our future.
Colleagues,
We can move towards this
goal only with the active participation of society, our citizens and,
of course, intense and productive work of all branches
and levels of government, the potential of which should be
expanded.
In this regard,
I would like to spend a moment discussing state structure
and domestic policy, which are defined by the Fundamental Law
of our country – the Constitution of the Russian
Federation. I keep getting these questions all the time, including
at the most recent annual news conference.
Clearly, we cannot but agree
with those who say that the Constitution was adopted over 25 years ago
amidst a severe internal political crisis and the state
of affairs has completely overturned since then. Thank goodness, there is
no more armed confrontation in the capital or a hotbed
of international terrorism in the North Caucasus.
Despite a number
of acute unsolved problems that we talked about today,
the socioeconomic situation has stabilised, after all. Today some
political public associations are raising the issue of adopting
a new Constitution.
I want to answer
straight off: I believe there is no need for this. Potential
of the 1993 Constitution is far from being exhausted
and I hope that pillars of our constitutional system, rights
and freedoms will remain the foundation of strong values
for the Russian society for decades to come.
In the meantime,
statements regarding changes to the Constitution have already been
made. And I find it possible to express my view
and propose a number of constitutional amendments
for discussion, amendments that, in my opinion, are reasonable
and important for the further development of Russia
as a rule-of-law welfare state where citizens’ freedoms
and rights, human dignity and wellbeing constitute the highest
value.
Firstly, Russia can be
and can remain Russia only as a sovereign state. Our nation’s
sovereignty must be unconditional. We have done a great deal
to achieve this. We restored our state’s unity. We have overcome
the situation when certain powers in the government were essentially
usurped by oligarch clans. Russia has returned to international
politics as a country whose opinion cannot be ignored.
We created powerful
reserves, which multiplies our country’s stability and capability
to protect its citizens’ social rights and the national economy
from any attempts of foreign pressure.
I truly believe that it
is time to introduce certain changes to our country’s main law,
changes that will directly guarantee the priority of the Russian
Constitution in our legal framework.
Second, I suggest
formalising at the constitutional level the obligatory
requirements for those who hold positions of critical significance
for national security and sovereignty. More precisely, the heads
of the constituent entities, members of the Federation
Council, State Duma deputies, the prime minister and his/her
deputies, federal ministers, heads of federal agencies and judges
should have no foreign citizenship or residence permit or any other
document that allows them to live permanently in a foreign
state.
The goal
and mission of state service is to serve the people,
and those who enter this path must know that by doing this they
inseparably connect their lives with Russia and the Russian people without
any assumptions and allowances.
Requirements must be even
stricter for presidential candidates. I suggest formalising
a requirement under which presidential candidates must have had permanent
residence in Russia for at least 25 years and no foreign
citizenship or residence permit and not only during the election
campaign but at any time before it too.
I know that people are
discussing the constitutional provision under which one person cannot hold
the post of the President of the Russian Federation for two
successive terms. I do not regard this as a matter
of principle, but I nevertheless support and share this view.
I have already said
before that our goal is to ensure high living standards and equal
opportunities for all throughout the country. It is towards this goal
that our national projects and development plans are aimed.
At the same time,
you know about the problems to do with education, healthcare
and other fields created by a divide between the federal
and municipal authorities – I have pointed this out more than
once. This divide and, at the same time, the complex system
of powers are having a negative effect above all
on the people.
The rights,
opportunities and guarantees, that are legally equal for all
citizens, are not provided equally in different regions
and municipalities. This is unfair to people and is directly
threatening our society and national integrity.
I believe that
the Constitution must seal the principles of a unified
system of public authority and effective interaction between
the federal and municipal authorities. At the same time,
the powers and practical opportunities of the local
governments, a body of authority that is closest
to the people, can and should be expanded and strengthened.
And lastly,
the state must honour its social responsibility under any conditions
throughout the country. Therefore, I believe that
the Constitution should include a provision that the minimum
wage in Russia must not be below the subsistence minimum
of the economically active people. We have a law on this,
but we should formalise this requirement in the Constitution along
with the principles of decent pensions, which implies a regular
adjustment of pensions according to inflation.
Fourth, Russia is
a huge country, and every region has its specifics, problems
and experience. Of course, this must be taken into account.
I believe it is necessary to cardinally increase the role
of governors in decision-making at the federal level.
As you know, back in 2000 the State Council was restored
at my initiative, where the heads of all regions
participate. Over the past period the State Council has proven its
high effectiveness; its working groups provide for the professional,
comprehensive and qualified examination of issues that are most
important for people and Russia. I believe it would be
appropriate to fix the status and role of the State
Council in the Russian Constitution.
Fifth, Russian society is
becoming more mature, responsible and demanding. Despite
the differences in the ways to address their tasks,
the main political forces speak from the position of patriotism
and reflect the interests of their followers and voters.
At the same time,
almost all the parties represented in the State Duma –
and you know that I have regular meetings with their leaders –
believe that the Federal Assembly is ready to take more responsibility
for forming the Government. (Applause.) I expected
this round of applause, but I think you will have another opportunity
for applause now; please listen until the end.
More responsibility
for forming the Government means more responsibility
for the Government’s policy. I completely agree with this
position.
What is the situation
like now? In accordance with articles 111 and 112
of the Russian Constitution, the President only receives
the consent of the State Duma to appoint the Prime
Minister, and then appoints the head of the Cabinet, his
deputies and all the ministers. I suggest changing
the procedure and allowing the State Duma to appoint
the Prime Minister of the Russian Federation, and then all
deputy prime ministers and federal ministers at the Prime
Minister’s recommendation. At the same time the President will
have to appoint them, so he will have no right to turn down
the candidates approved by the Parliament. (Applause.)
All of this means
drastic changes to the political system. However, let me repeat,
considering the maturity of our main political organisations
and parties as well as the reputation of civil
society, I believe these proposals are justified. This will increase
the role and importance of the State Duma
and parliamentary parties as well as the independence
and responsibility of the Prime Minister and other Cabinet
members and make cooperation between the representative
and executive branches of government more effective
and substantive.
What does it mean? It means
literally the following: requirements of international law
and treaties as well as decisions of international bodies
can be valid on the Russian territory only to the point
that they do not restrict the rights and freedoms of our people
and citizens and do not contradict our Constitution.
Second, I suggest formalising at the constitutional level the obligatory requirements for those who hold positions of critical significance for national security and sovereignty. More precisely, the heads of the constituent entities, members of the Federation Council, State Duma deputies, the prime minister and his/her deputies, federal ministers, heads of federal agencies and judges should have no foreign citizenship or residence permit or any other document that allows them to live permanently in a foreign state.
Second, I suggest formalising at the constitutional level the obligatory requirements for those who hold positions of critical significance for national security and sovereignty. More precisely, the heads of the constituent entities, members of the Federation Council, State Duma deputies, the prime minister and his/her deputies, federal ministers, heads of federal agencies and judges should have no foreign citizenship or residence permit or any other document that allows them to live permanently in a foreign state.
The goal
and mission of state service is to serve the people,
and those who enter this path must know that by doing this they
inseparably connect their lives with Russia and the Russian people
without any assumptions and allowances.
Requirements must be even
stricter for presidential candidates. I suggest formalising
a requirement under which presidential candidates must have had permanent
residence in Russia for at least 25 years and no foreign
citizenship or residence permit and not only during the election
campaign but at any time before it too.
I know that people are
discussing the constitutional provision under which one person cannot hold
the post of the President of the Russian Federation
for two successive terms. I do not regard this as a matter
of principle, but I nevertheless support and share this view.
I have already said
before that our goal is to ensure high living standards and equal
opportunities for all throughout the country. It is towards this goal
that our national projects and development plans are aimed.
At the same time,
you know about the problems to do with education, healthcare
and other fields created by a divide between the federal
and municipal authorities – I have pointed this out more than once.
This divide and, at the same time, the complex system
of powers are having a negative effect above all
on the people.
The rights,
opportunities and guarantees, that are legally equal for all
citizens, are not provided equally in different regions
and municipalities. This is unfair to people and is directly
threatening our society and national integrity.
I believe that
the Constitution must seal the principles of a unified
system of public authority and effective interaction between
the federal and municipal authorities. At the same time, the powers
and practical opportunities of the local governments,
a body of authority that is closest to the people, can
and should be expanded and strengthened.
And lastly,
the state must honour its social responsibility under any conditions
throughout the country. Therefore, I believe that
the Constitution should include a provision that the minimum
wage in Russia must not be below the subsistence minimum
of the economically active people. We have a law on this,
but we should formalise this requirement in the Constitution along
with the principles of decent pensions, which implies a regular
adjustment of pensions according to inflation.
Fourth, Russia is
a huge country, and every region has its specifics, problems
and experience. Of course, this must be taken into account.
I believe it is necessary to cardinally increase the role
of governors in decision-making at the federal level.
As you know, back in 2000 the State Council was restored
at my initiative, where the heads of all regions
participate. Over the past period the State Council has proven its
high effectiveness; its working groups provide for the professional,
comprehensive and qualified examination of issues that are most
important for people and Russia. I believe it would be
appropriate to fix the status and role of the State
Council in the Russian Constitution.
Fifth, Russian society is
becoming more mature, responsible and demanding. Despite
the differences in the ways to address their tasks,
the main political forces speak from the position of patriotism
and reflect the interests of their followers and voters.
At the same time,
almost all the parties represented in the State Duma –
and you know that I have regular meetings with their leaders –
believe that the Federal Assembly is ready to take more
responsibility for forming the Government. (Applause.) I expected
this round of applause, but I think you will have another opportunity
for applause now; please listen until the end.
More responsibility
for forming the Government means more responsibility
for the Government’s policy. I completely agree with this
position.
What is the situation
like now? In accordance with articles 111 and 112
of the Russian Constitution, the President only receives
the consent of the State Duma to appoint the Prime
Minister, and then appoints the head of the Cabinet, his
deputies and all the ministers. I suggest changing
the procedure and allowing the State Duma to appoint
the Prime Minister of the Russian Federation, and then all
deputy prime ministers and federal ministers at the Prime
Minister’s recommendation. At the same time the President will
have to appoint them, so he will have no right to turn down
the candidates approved by the Parliament. (Applause.)
All of this means
drastic changes to the political system. However, let me repeat,
considering the maturity of our main political organisations
and parties as well as the reputation of civil
society, I believe these proposals are justified. This will increase
the role and importance of the State Duma
and parliamentary parties as well as the independence
and responsibility of the Prime Minister and other Cabinet
members and make cooperation between the representative
and executive branches of government more effective
and substantive.
Colleagues,
I would like
to emphasise that our country, with its vast territory, complex federal
and administrative division and diverse cultural and historical
traditions, cannot properly advance and even exist sustainably
as a parliamentary republic.
Russia must remain
a strong presidential republic. The president must undoubtedly retain
the right to determine the Government's tasks
and priorities, as well as the right to dismiss
the prime minister, his deputies and federal ministers in case
of improper execution of duties or due to loss of trust.
The president also exercises direct command over the Armed Forces
and the entire law enforcement system. In this regard,
I believe another step is necessary to provide a greater balance
between the branches of power.
In this connection,
point six: I propose that the president should appoint heads
of all security agencies following consultations with the Federation
Council. I believe this approach will make the work of security
and law enforcement agencies more transparent and accountable
to citizens.
The principle
of appointment following consultations can be applied to regional
prosecutors as well. Currently they are appointed in coordination
with regional legislative assemblies. Colleagues, this may lead
to certain, including informal, obligations towards local authorities
and ultimately to the risk of losing objectivity
and impartiality.
As to the territories'
position regarding a prosecutor candidacy in the constituent
entities of the Federation, it can be considered during consultations
in the Federation Council, which is in fact the chamber
of the regions. We cannot have different local legislative systems
in different regions; the prosecutor is a supreme authority who
exercises control over the execution of laws irrespectively
of any regional circumstances.
I am confident that
a greater independence of prosecution agencies from local authorities
would be beneficial for citizens regardless of the region.
Colleagues, let us always be governed by the interests of our
people.
And my seventh
and final point: the judicial system – the Constitutional
and Supreme courts – plays a key role in ensuring legality
and citizens’ rights. I would like to emphasise, along with
judges’ professionalism, their credibility should be unconditional
as well. Being fair and having a moral right to make
decisions that affect people’s lives have always been considered
of paramount importance in Russia. The country’s fundamental law
should enshrine and protect the independence of judges,
and their subordination only to the Constitution
and federal law.
At the same time,
I consider it necessary to stipulate in the Constitution
the Federation Council’s authority to dismiss,
on the proposal from the President, Constitutional
and Supreme Court judges in the event of misconduct that
defames a judge’s honour and dignity, as well
as in other cases provided for by federal constitutional
law, that make it impossible for a person to maintain
the status of a judge. This proposal is derived from
the established practice. This is something Russia definitely needs today.
Furthermore, to improve
the quality of domestic legislation, to reliably protect
citizens' interests, I propose strengthening the role
of the Constitutional Court, namely: to verify,
at the President’s request, the constitutionality of draft
laws adopted by the Federal Assembly before they are signed
by the head of state. We might also think about extending
the powers of the Constitutional Court to evaluate not only
laws, but also other regulatory legal acts adopted by various authorities
at the federal and regional levels for compliance with
the Constitution.
Colleagues,
Again, the proposals
made today, by no means limit the discussion around possible
amendments to the Constitution. I am sure that public
associations, parties, regions, the legal community, and Russian
citizens will express their ideas. The broadest public discussion is
needed. But, opening this discussion, I would like to give it
a start in a certain direction, or at least
to show what challenges we are facing.
Please, do not forget what
happened to our country after 1991. After the collapse
of the Soviet Union, we still had the same ambitions
and of course have preserved the colossal potential –
the human, intellectual, resource, territorial, cultural and historical
potential, and so on. But there were also threats, dangers
of a magnitude no one could have imagined ever before. And that
was a pity, as they should have thought about it in due time.
Therefore in our
further state building efforts, we are facing seemingly contradictory tasks
that serve as a guideline for values and may appear
incompatible at first sight. What am I referring to? We must create a solid,
reliable and invulnerable system that will be absolutely stable
in terms of the external contour and will securely
guarantee Russia’s independence and sovereignty. At the same
time, this system must be organic, flexible and capable of changing
quickly in line with what is happening around us, and most
importantly, in response to the development of Russian
society. This system must ensure the rotation of those who are
in power or occupy high positions in other areas. This renewal
is indispensable for the progressive evolution of society
and stable development that may not be infallible but ensures that
the most important thing – Russia’s interests – remains immutable.
What else do I consider
important and would like to emphasise? The amendments that we
will discuss do not concern the foundations of the Constitution
and, hence, can be approved by Parliament in line with
the existing procedure and law through the adoption
of relevant constitutional laws.
At the same time,
considering that the proposed amendments concern substantial changes
in the political system and the work
of the executive, legislative and judicial branches,
I believe it necessary to hold a vote of Russian citizens
on the entire package of the proposed amendments
to the Constitution of the Russian Federation.
The final decision must be made only on the basis of its
results.
The opinion
of people, our citizens as the bearers of sovereignty
and the main source of power must be decisive.
In the final analysis everything is decided by the people,
both today and in the future. I am referring to both
the choice of national development strategy and daily issues
in each region, city or village. We will be able to build
a strong, prosperous and modern Russia only on the basis of unconditional
respect for the opinions of the people, the opinions
of the nation.
The current year
of 2020 is a landmark in many respects. It is a transition
to the third decade of the 21st century.
Russia is faced with breakthrough historical tasks and everyone’s
contribution is important for resolving them. Working together we are
bound to change our lives for the better. I often mention
the word “together” because Russia means all of us. I am
referring not to the people present in this hall or rather
not only to the people present in this hall but all citizens of this
country because I believe that success is determined by our will
for creation and development, for the implementation
of the most ambitious plans, our labour for the sake
of our families and loved ones, our children and their future,
and hence, for the sake of Russia’s greatness
and the dignity of its citizens.
Thank you for your
attention. (Applause.)
The National Anthem
of the Russian Federation.
To be continued.
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