Russian President Putin offers week-long social package to battle coronavirus

To lend a hand of support and assure Russian citizens that government would reach any ends to support m amid unprecedented coronavirus outbreak, President Vlimir Putin on March 25 proposed various unconventional emergency social measures to support families and businesses, such as a week-long holiday for workers and higher taxes on dividends.

Bonus for workers

During a televised dress to nation, Putin sought to reassure Russian citizens and markets that government would use all of its available force to stave off ecomic collapse. Russia till w has reported 658 cases of coronavirus, with March 25 seeing its sharpest increase in new cases, and says body has died. But ecomy has been hit by prolonged uncertainty over coronavirus and tumbling oil prices, which has seen rouble fall to four-year lows.

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Putin’s anuncement that next week, beginning on March 30 would be an extended holiday for workers, except key businesses like pharmacies, banks, and supermarkets, was an unconventional step. Some or countries have preferred locking down cities, with people only allowed out for food and medicine. Putin said that Russia’s ecomy, like that of or countries, is under strong negative pressure because of consequences of epidemic and It is w crucial to prevent threat of disease spreing rapidly. refore he declares coming up week a n-working week with pay.

Alongside this measure, Putin said unemployment benefits should be lifted to mirror minimum w, at 12,130 rubles ($153) a month, specifically mentioning need to support young people, a group of voters he has tritionally found harder to win over at elections. He suggested increasing child benefits by an extra 5,000 rubles a month for all children under of three and also proposed a six-month moratorium on tax payments for small and medium-sized businesses. To combat capital outflows, Putin said all interest and dividend payments that leave Russia should be subject to 15 per cent tax, up from current level of 2 per cent.

Furrmore, Putin said Russia would tax interest payments on deposits of more than 1 million rubles, a measure he said should help allocate ditional funds to fight ecomic impact of coronavirus. Putin did t mention how much his new measures would cost budget, which is expected to see a 3 trillion rouble shortfall this year from weak commodity prices only.

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