Economy is Top Priority, Putin Entrusts Medvedev With "Yellow Folder" of Drastic Reforms

Today, Vladimir Putin has charged Dmitry Medvedev with analyzing the implementation of May orders and addressing certain economic fields where not all the plans have been implemented over the past year. Tomorrow, the PM will present the Annual Government Performance Report to the State Duma. Meeting the President today, the head of the government set forth the paper's bullet points. Tatyana Remezova has the details of the meeting. The PM's speech to the President, summing up the annual Government Performance Report, fits into a compact yellow folder. The President asks the PM not to stop at the 2017 results, but to present a broader picture to the Parliament. Vladimir Putin: "Mr. Medvedev, tomorrow you are presenting an annual Government Report to the State Duma. Thank you for the draft report. However, I would like to talk about the points you will prioritize in your speech at the State Duma. Perhaps, we can go beyond 2017 and cover several years". Dmitry Medvedev: "Since this was a very difficult period, the resulting picture is rather colorful. We started with a period of economic recovery when everything was developing generally well. Then, we faced some very serious problems due to both external factors such as the dropped prices on energy carriers and the sanctions imposed later, and domestic factors and disproportions that have accumulated in the economy over the past decades". Basic macroeconomic indicators are at proper levels. For example, the inflation is at an absolute low, dropping to 2.4% in March, which allowed to decrease the interest rate to 7.25% and offer cheaper mortgage and business loans. Then, the state debt, determining the credibility of the state, is low too. Moreover, the GDP has grown not fast, but tangibly in the first quarter of 2018. Despite external restrictions, the budget certainly can allocate money for social needs. Dmitry Medvedev: "Our social obligations for 2017 were carried out in full, as promised. The Government took as guidelines all presidential instructions and fulfilled them in full". Concerning the May Presidential executive orders, the PM emphasizes an increase in regional salaries. Dmitry Medvedev: "There are difficulties and disproportions in some regions, but, generally, the planned figures have been achieved". Vladimir Putin: "But look, not everything has been done to 100 percent in every area. I would like to ask you to analyze this and discuss it with your colleagues". Dmitry Medvedev: "We will analyze this by all means, Mr. President. Practically everything has reached the established level in this respect. Though this was done not late last year but early this year. We managed to catch up on some things during the past few months". The industries, like chemicals, petrochemicals, pharmaceuticals and high-tech produced quite good results. In the recent address, Vladimir Putin stressed that Russia needs a major technological spurt. If we are too slow, we'll hardly catch up. The key question arises where investors for new productions can be found. Dmitry Medvedev: "In your Address, you spoke about investment in fixed capital because for the time being growth in this investment is fairly sluggish. This needs to be resolved soon". Vladimir Putin: "All right. I wish you good, positive and constructive work with the deputies in the State Duma". Dmitry Peskov, the President's spokesperson, says the President and the PM also discussed the current economic situation in Russia apart from the Government's performance in 2017. Tatyana Remezova, Mariya Samsonova, and Ilgiz Khakimov for Vesti.