On Monday, May 11, Vladimir Putin announced new measures to support Russians and businesses amid the impact of coronavirus on the economy. In particular, the head of state announced additional financial assistance to families with children.
So, the Russian leader proposed to double the amount of childcare benefits (up to 6751 rubles), and also from June 1 to introduce one-time payments of 10 thousand rubles for each child from 3 to 16 years old.
“In my opinion, we have made the right fair decision. To receive such a one-time help, do not introduce any formal criteria. There can only be one condition now - everyone who needs it should receive help, ”Putin emphasized.
As the head of state previously stated, from May to June, families with the right to maternity capital will be additionally paid 5 thousand rubles for each child under the age of three years inclusive. Meanwhile, during a speech on May 11, the head of state proposed expanding the number of recipients of this assistance.
“I have already talked about additional payments for each child up to three years for families entitled to maternity capital. But we also have many families that do not have this right, because the baby was born before January 1 of this year, that is, before the date on which the new procedure for providing maternity capital was introduced, including for the first child, ”Putin said .
Against this background, the president instructed to establish a monthly payment of 5 thousand rubles at once for all families with children under three years old, and not only in May and June, but also in April. Also, Vladimir Putin recalled that from June 1, families where the income per family member is below the subsistence minimum can issue a payment for children from three to seven years.
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“Needy families, where the income per family member is below the subsistence level, can arrange payments for children from three to seven years old inclusive. Do it earlier, not from July 1, as provided in due time, but from June 1. I draw your attention, such payments are accrued, as he said in the message (to the Federal Assembly. - RT ), from the beginning of this year. Thus, the family, having submitted an application in June, will receive one-time all the money due for the first half of this year - I emphasize that this is an average of 33 thousand rubles per child, ”Putin said.
In the future, such families will be regularly paid an average of about 5.5 thousand rubles per child per month. In general, 27 million children will receive additional support from the state in connection with the coronavirus pandemic.
“These are precisely the measures of direct material support to the population that people have been waiting for and talked about when comparing the actions of the Russian government with other states. That measures are aimed at families with children is correct. This category of the population turned out to be the most vulnerable in a situation where jobs are lost and incomes are reduced, ”commented Pavel Sigal, president of the All-Russian public organization of small and medium-sized enterprises“ Support of Russia ”, in conversation with RT.
The expansion of the material assistance program will reduce the financial burden on families with children and maintain the quality of life of Russians at an acceptable level. This point of view in a conversation with RT was voiced by the head of the analytical department of AMarkets Artem Deev.
“Since the announcement of non-working days, the population continued to spend money on the most basic needs: food, paying loans, buying medicines and paying for housing and communal services. As a result, gaps have been created in the family budgets of many families. Therefore, direct cash payments will help at least partially close current expenses and reduce the degree of stress. People will have extra time to assess opportunities and find a new job or part-time job without fear that tomorrow there will be nothing to eat or nothing to pay for the apartment, ”the expert explained.
Earlier, under the assistance program, the unemployment benefit was also increased (up to one minimum wage) for those who lost their jobs after March 1 and applied to the employment service in April - June. Moreover, during this period of time, families with children whose parents are recognized as unemployed will be paid 3 thousand rubles for each minor child.
Affordable loan
In addition to helping families with children, Vladimir Putin also announced the launch on June 1 of a new loan program to support employment in affected sectors of the economy. We are talking about issuing loans to businesses at a rate of 2% per annum. The money should go to pay salaries to employees at the rate of one minimum wage (12,130 rubles) per employee.
A 85% loan to companies will be secured by state guarantees. Moreover, the loan itself can be partially or completely written off if employers retain jobs.
“If during the whole term of the loan program the company will keep employment at the level of 90% and higher of its current staffing, then after the loan expiration the loan itself and the interest on it will be completely written off. The state will bear these costs, ”Putin emphasized.
The president also added that while maintaining employment at a level of at least 80%, the state will take on half of the loan and interest on it. In general, the announced measure will support about 7 million jobs.
“We note that given the rate subsidized by the state and the availability of state guarantees for such loans, this measure may be in certain demand from business. At the same time, the banking sector, in many respects due to the availability of state guarantees, will also provide companies with more active credit support, ”said Anton Pokatovich, Chief Analyst, BCS Premier, RT.
Recall that earlier, as a measure of economic support, Vladimir Putin signed the law on granting credit holidays to citizens and organizations whose incomes were reduced by at least 30%. Additional assistance to the business is provided by the loan subsidy program. Thus, banks already provide companies with loans for a period of 12 months: for the first six months, interest is not charged, after which the rate rises to 4% per annum.
In addition to interest-free loans, from May to June, the most affected by the pandemic companies receive free financial assistance from the state in the form of grants for payments to their employees - also at the rate of one minimum wage for each employee. For these purposes, the government has already allocated more than 81.1 billion rubles from the reserve fund. At the same time, a business can receive funds only if it retains at least 90% of its staff compared to March 2020.
Tax bonus
Vladimir Putin also proposed to completely deduct tax payments for Russian business for the second quarter of 2020, excluding VAT. Prior to this, companies from the most affected sectors of the economy were granted a six-month deferral of all taxes (except VAT), as well as insurance premiums and rental payments.
"In this case, the principle of not deferral, but the full write-off of taxes and insurance premiums for the second quarter of this year will work: for April, May, June - for those months when the business has been and will still be in a difficult situation," Putin stressed .
At the same time, the Russian leader proposed that the income tax paid in 2019 be returned in full to self-employed citizens. According to the president, last year in four regions of the country (in Moscow, Tatarstan, Moscow and Kaluga regions), self-employed citizens received the “opportunity to formally formalize their activities, leave the gray zone and pay income tax. In total, 340 thousand people took this opportunity.
“These people believed the state, believed its guarantees to work in a secure and civilized manner. I believe that such a desire should be supported and even encouraged, ”the president said.
In addition, the head of state ordered self-employed tax capital in the amount of one minimum wage to pay tax payments in 2020. At the same time, individual entrepreneurs will also be provided with a tax deduction in the amount of one minimum wage in respect of insurance premiums.
“The benefits for the self-employed will have a favorable effect on the economy. These people, as well as small and medium-sized businesses as a whole, supported the Russian budget to the best of their ability in previous years by legalizing and paying taxes. As a rule, such workers also do not have large financial reserves, but real support encourages them not to abandon the business and continue working after the crisis, ”explained Artem Deev.