ALEXEI VEDEV: OVER THE PAST FEW YEARS THE AUTHORITIES HAVE MODIFIED THE TARGET SCENARIO CONCEPT

Alexei Vedev, Leading Researcher of the Gaidar Institute commented on the prospects of implementation of national projects to the Nezavisimaya Gazetta daily.
According to Alexei Vedev, over the past few years the authorities have largely modified the concept of the target scenario.
The goal of achieving the average global growth rates was set by the President late in 2014. At that time, the idea of a switchover to an investment model was formulated.  In its elaborations, the Government made an emphasis on private investments and upgrading of the business climate, Alexei Vedev said at the Veles Capital conference.  
However, the situation has changed: the goals have remained the same, but the emphasis is made on state investments, while the private business should be oriented on national projects and the state initiative, Alexei Vedev notes.  According to the economist, it is a risky scenario.
It seems the Government will spend a huge sum of money on implementation of national projects, Alexei Vedev says. It is Rb 25.7 trillion to be spent in the period till 2024 included (of which about Rb 13.2 trillion is allocated directly out of the federal budget). But, actually, it is only Rb 4 trillion a year, while the volume of capital investments in Russia amounts to about Rb 20 trillion a year and is made up for 70% of private investments, Alexei Vedev specified.  
Such estimates are supported by the Rosstat’s data: at year-end 2018 capital investments in the Russian Federation amounted to about Rb 18 trillion and were made up for 71% of private investments.