Audit from Kudrin: why the inefficient state of small business :: Economy :: RBC

The state program on development of small and average business does not provide employment growth in this sector, and the Federal subsidies to the regions to support SMEs are unevenly distributed, entered into the chamber

Alexei Kudrin

(Photo: Maxim Blinov / RIA Novosti)

The chamber has identified the ineffectiveness of the measures of state support of small and medium enterprises (SMEs). The volume of loans to SMEs is reduced and the implementation of the state program on development of small and medium business does not contribute to the increase in jobs in this sector, the auditors ‘ opinion on the results of the analysis of support measures to SMEs in 2014-2017 (have RBC).

Authorities for three years under the state program “Economic development and innovative economy” is directed at the development of SMEs 120,5 billion rubles from the Federal budget. The accounting chamber auditors noted that the target indicators of the program for 2017 was mostly done but this was achieved by significantly reducing themselves planned values compared with 2014. One of the main indicators of the state program — “the Number of new jobs created in the SME sector” — targets decreased from 108 thousand in 2014 to 25 million in 2017.

“The annual decline of this indicator <…> indicates that the implementation of the state program has no significant effect on employment in the SME sector,” said auditor Andrew Pirchan.

The auditors identified disparities among regions in obtaining grants for development of small and medium-sized businesses. In the years 2014-2016 more than 20% of the Federal funds provided for support of SMEs, were directed only five of the 85 regions. In 2017, about 40% of the subsidies accounted for 11 regions with more than 200 million rubles each, while eight regions have received less than 0.7% of the subsidies. Five of the 11 regions that received the greatest amount of support has not reached the planned values in terms of number of jobs created in small business.

The state program is not the relationship between the setting of planned values and the amount of subsidies, said in the chamber. In the Republic of Adygea, an example of the allocation of more than 209 million RUB indicator has been established to create 73 jobs, and in the Yamalo-Nenets Autonomous Okrug with the less than 9 million rubles figure was 81 workplace.

The chamber stressed that supplied by President Vladimir Putin, in 2016 the goal is to bring the number of employees in small and individual business to 20 million people by 2018 are not achieved. “The number of enterprises SMEs in 2015-2017 increased from 4.5 million to 6 million, however, the number of employed in small and medium-sized businesses in General by 1 July 2018 is 19.2 million people,” said Percan. In the new may decree the President instructed the government to increase the number of employees in SMEs, including individual entrepreneurs, to 25 million people by 2024.

Not been achieved and one of the main objectives of the National guarantee system (NGS) to increase long-term lending to SMEs, the auditors stated. The share of loans secured by guarantees in the framework of the NHS, remains low, ranging from 1.5% on January 1, 2016 to 4.8% on 1 January 2018. “The analysis showed that in the years 2015-2017, the volume of loans to SMEs decreased”, — the auditors ‘ opinion.

In his address to the Federal Assembly, Putin set the goal of completion by 2024, the contribution of small and medium-sized businesses in GDP up to 40%. But the indicators “SMEs’ contribution in GDP and contribution of SMEs in the GRP” state statistical bodies now are not observed, have noted in the chamber. “Assessment of strategic goal a priori is impossible,” said the auditors. According to the Ministry of (*.pdf), the contribution of SMEs in Russia’s GDP is 19.9%.

The government is discussing a new mechanism for financing Federal Corporation for development of small and medium enterprises (SME Corporation), said informed sources RBC. The Ministry of economic development proposes to replace direct recapitalization of SME Corporation to subsidize losses on defaulted loans to small enterprises. This will allow to reduce budget expenses on financing of the Corporation and to increase the amount of guarantees on loans to small businesses.

Leave a Reply

Your email address will not be published. Required fields are marked *