Summary of Russian Macroeconomics
Summary of the Russian Economic Policies
March 21, 2011
Differences in Fiscal Policy of our Countries Several differences in Russia’s Fiscal Policy from the other countries are the multiple measures that are available to evaluate the performance of fiscal policy. Russia’s debt-stabilizing surplus funding through the Russian Central Bank is Russia’s most appropriate measure when evaluating its ability to sustain the public debt in the long-term. Russia currently has the third largest GDP growth rate next to India being second, China being first, and Brazil being fourth; however, Russia ranks 13th on the Global scale. President Putin’s new fiscal policy in 2006 allowed Russia’s currency (in rubles) to become interchangeable for both recent and capital transactions. Russia also overhauled its entire tax system by taxing and saving the ever-increasing oil export revenues and provided flat 12% flat rate taxation for its citizens opposed to the higher tax rates for various citizen classes from other countries. In addition an integrated tax system was put in place for corporations providing a 110% improvement on tax collection. During 2007 the Russian federal budget surplus was 6.5% of GDP, and in 2008 the Russian Government finished the year with a surplus of 5.1% of GDP. Russia’s new standard fiscal stance and fiscal impulse were the most appropriate measures in evaluating how much fiscal policy was contributed to changes in aggregate demand.
Factors that contribute to economic growth Several factors contributing to economic growth are the country’s ability to export more resources than other countries; to include the increase in the quality of available resources. For instance, Russia has the ability to manufacture and export more efficient fuel in the form of jet fuel, which is much more suitable than the normal oil or coal exports regarding energy conservation. This kind of switch in resources provides the country with a much higher economical growth
March 21, 2011
Differences in Fiscal Policy of our Countries Several differences in Russia’s Fiscal Policy from the other countries are the multiple measures that are available to evaluate the performance of fiscal policy. Russia’s debt-stabilizing surplus funding through the Russian Central Bank is Russia’s most appropriate measure when evaluating its ability to sustain the public debt in the long-term. Russia currently has the third largest GDP growth rate next to India being second, China being first, and Brazil being fourth; however, Russia ranks 13th on the Global scale. President Putin’s new fiscal policy in 2006 allowed Russia’s currency (in rubles) to become interchangeable for both recent and capital transactions. Russia also overhauled its entire tax system by taxing and saving the ever-increasing oil export revenues and provided flat 12% flat rate taxation for its citizens opposed to the higher tax rates for various citizen classes from other countries. In addition an integrated tax system was put in place for corporations providing a 110% improvement on tax collection. During 2007 the Russian federal budget surplus was 6.5% of GDP, and in 2008 the Russian Government finished the year with a surplus of 5.1% of GDP. Russia’s new standard fiscal stance and fiscal impulse were the most appropriate measures in evaluating how much fiscal policy was contributed to changes in aggregate demand.
Factors that contribute to economic growth Several factors contributing to economic growth are the country’s ability to export more resources than other countries; to include the increase in the quality of available resources. For instance, Russia has the ability to manufacture and export more efficient fuel in the form of jet fuel, which is much more suitable than the normal oil or coal exports regarding energy conservation. This kind of switch in resources provides the country with a much higher economical growth
References: Adelaja, T. (2011, March 17). The price of development. Retrieved from http://russiaprofile.org/business/ Tuomas, K. (2010, March). Russia: growth prospects and policy debates. Retrieved from http://www.balticdata.info/russia/economics/macro_economics/russia_macro_economics_russia_GNP_GDP_summary.htm U.S. State Department, . (2011). Russia: growth prospects and policy debates. Retrieved from http://www.state.gov/r/pa/ei/bgn/3183.htm