Rustem Khamitov: "We will work actively in all areas"

On August 20, Rustem Khamitov held an enlarged meeting of the Government of Bashkortostan. According to the press service of the head of the republic, results of social and economic development of the region in the first half of 2014 were reviewed and analyzed.

Despite several unfavourable external factors, the republican economy remains stable today. "We are ahead of the national average on the main indicators of economy development", the head of the region said.

He noted that the gross regional product of the republic increased by 1.5 percent for six months, GDP - by 1 percent.

Industrial production increased by nearly two percent in the republic, in Russia – by 1.5 percent. "The republic can and should increase production of its own, especially high-tech products of high added value in refining, petrochemical, chemical industries. If we talk about radio electronics, production of communication means, our businesses do have necessary technological and human potential to reduce the share of imported goods in the market. There is a great potential in our machine-building complex too", Rustem Khamitov said.

Speaking of the budget the head of the republic said that "Total consolidated regional budget received revenues in the amount of 73 billion rubles. It is almost by five percent more than the last year. We are close to the implementation of the targets, we are lagging behind by about 800-900 million rubles. But income tax revenues decreased, less excise taxes on petroleum and alcohol were received - these losses were large enough. They amount to billions of rubles".

According to Rustem Khamitov "we are waiting for high indexes in agro-industrial complex after the autumn harvest." "So far the production index is 101.6 percent. Now the main task for farmers is to collect their harvest without losses, to use all available processing facilities. And then they should ensure timely sales of products, including in other regions of the country".

Concerning the housing construction Rustem Khamitov noted that the success of the last year could be repeated, when the republic ranked first in the Volga Federal District, and entered the top five regions of Russia. Already in the first half of the year more than a million sq m of housing were put into operation.

"However, it should be marked that two-thirds of the commissioned housing are accounted for individual construction. Multistory housing is very expensive. Ufa is now in the top three megacities with most expensive cost of housing, except for Moscow and St. Petersburg which stand apart", said the head of the region.

Rustem Khamitov also drew attention to another deterrent to development - low wage growth. "The average wages increased only by seven percent in nominal terms and by half a percent in real terms, reaching 23 thousand 600 rubles. In the Russian Federation, the average wages exceeded 30 thousand rubles. Throughout the country, growth was more pronounced. Nationwide the wage growth was about 10 percent. In fact, increase in wages was "ate" by inflation, which reached nearly 5 percent. We fully execute the plan on increasing salaries in the public sector under the "May" decrees of the President of Russia. And yet, these rates are not sufficient for us".

"Despite a number of difficulties in general the first half of the year was quite good", Rustem Khamitov said. “Investments amounted to almost 100 billion rubles, which is by 11 percent more than in the first half of the last year.”

“The registered unemployment rate decreased from 1.2 to 1.1 percent. According to the methodology of the International Labour Organization it decreased from 5.8 to 5.3 percent. Birth rate increased, mortality declined. Almost 30 thousand children were born. The republican population increased by 2.5 thousand people considering the migration growth."

"Now it is the time to talk about a system approach and management optimization as key resources for development." "We will create favourable living conditions; we will work actively in all areas. I hope that this will happen", the head of Bashkortostan is sure.