The Russian economy needs a new growth model for economic development, said Russian President Dmitry Medvedev in his budgetary address on Wednesday.
Addressing budgetary matters for the next three years, Medvedev outlined 12 key priorities that would raise the efficiency of state governance, modernise the economy and improve living standards in the country.
One of Medvedev’s key priorities include reducing the role of the government in the economy through privatization, an overhaul of the state purchase system and the expansion of state and private partnership.
Medvedev ordered the government to prepare for the sale of its controlling stakes in some key state companies, while calling for the cabinet to prepare a schedule for the sales.
Earlier in the week, Russian Finance Minister Alexei Kudrin announced plans to sell the government’s controlling stakes in Rosneft (oil company) and Aeroflot (national carrier), along with its stakes in other Russian companies and banks. Kudrin predicted that the selloff would yield about US$30 billion over the next three years.
Apart from privatising state owned companies, Russia is also aiming to decentralise the current power base from federal to regional to municipal governments.
Medvedev called for proposals to be submitted by December 1st this year and has announced plans to set up a working group to discuss the decentralisation process.
The Russian Finance Minister Kudrin added that the President’s measures must be implemented within the next three years in order to facilitate economic development in the country.
Story from Ria Novosti