BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/09
The total value of the package amounts to just under 700 billion rubles (€8 billion). However, most of the measures inked in the programme are already included in this year’s federal budget. The additional funding needs are put at 160 billion rubles. This corresponds to 0.2 % of GDP, so the impact on the economy is likely to be limited. It is also still unclear where the additional funding will come from.
Some 60 % of the total 700-billion-ruble package will go to regions and social spending, a bit more than a third will go to supporting industry and rest to help small and medium-sized enterprises (about half in the form of government guarantees). Over 70 % of the 160-billion-ruble additional funding is marked for industry, with the remainder going to regions and social spending. Carmakers are the big winners; they are set to receive support worth 140 billion rubles.
The programme also includes a long list of structural reforms. These cover a broad spectrum of various measures like regulatory reforms and improved oversight of state firms.