OREANDA-NEWS. March 24, 2010. It has become a tradition that once a year the Government of Karelia conducts an enlarged session to sum up social and economic development of the republic and to define prospects. Together with members of the Government results of work of republican authority are discussed by deputies, heads of towns and regions, directors of enterprises, institutions, public organizations. Such session of the Government was held on March, 23 in the auditorium of the Karelian State Philarmonic Society chaired by the Head of the Republic Sergey Katanandov. Prime Minister of Karelia Pavel Chernov has reported about work of the Government.

As the previous year was crisis, one of the primary goals of the authority was to stabilize situation in the economy of the region for which purpose there has been developed a Program of Anti-Recessionary Measures that have made it possible to prevent price explosion of production in the republic, collective dismissals at industrial enterprises and wage cut. According to the Ministry of Regional Development of Russia, Karelia is reckoned with 14 constituents of the country where anti-recessionary actions were implemented in the most successful way.

As the Prime Minister has reported, index of industrial production during the year in the region has made 90.1%, that is a little more than on the average in Russia – 89.2% and in the Northwest – 88.6%.

The Government of Karelia has provided fulfilment of obligations on rendering measures of social support to certain categories of citizens and payment of wages to employees of government-financed organizations in full. It was the second main task facing the leaders of the republic. Measures of social support were received by more that 300,000 residents of Karelia. For these purposes it has been assigned 5,9 billion roubles. In spite of the fact that incomes of the consolidated budget of the republic were reduced by 1,2 billion roubles, social sphere and social policy charges have grown by 1,9 billion roubles.

According to Pavel Chernov, much has been made to involve investments in the republic, modernize enterprises, industrial and social infrastructure. From the federal budget it has been received more than 2 billion roubles of investments thatnks to which construction and reconstruction of a number of socially significant objects proceeded: the White Sea-Baltic Canal, the National Library and the State Conservatory, construction of start-up facilities of school in the village of Sheltozero, a swimming pool with a mini-aquapark in Kostomuksha, reconstruction of the first stage of water treatment works in Petrozavodsk as well as a number of other objects is completed. Most of these objects have been constructed or remains under construction within the scope of preparation to the 90th anniversary of formation of Karelia.

To republic has provided funds for construction of a school in the settlement Sukkozero, reconstruction of Olonets regional hospital, and major overhaul of Musical Theatre, completion of construction of biathlon shooting ground at Kurgan.

In 2009 gasification of the republic proceeded. It has been implemented 14 large investment projects in power engineering, mining and timber processing complexes. The volume of investments into the fixed capital has made 18,7 billion roubles.

Speaking of plans for the current year, the Prime Minister has noted, that first of all the Government of Karelia will continue pursuing its anti-recessionary policy. The main priority will be granting measures of social support and observance of on-time wage payments in the budgetary sphere.

All the current tax remissions, as well as the moratorium on rent increase on agreements with subjects of small and medium business will be valid in 2010.

From the federal budget the republic will receive this year over 3 billion 800 million roubles, that is 1.7 times more, than in 2009. Almost 87% of this money will be spent for transport infrastructure development. Construction of traffic intersection on Kola federal motorway near the settlement of Shuya, construction of the new bridge through the Shuya river will proceed, and the object is expected to be put in operation at the end of the year.

The Republic will keep supporting investment activity, small and medium business, branches of real sector of economy. To implement all the assigned tasks there has been developed the Plan of Actions of the Government of Karelia for 2010 for stabilization of social and economic situation, creation of conditions for modernization of economy and human capital development.

All speakers at the session of the Government have specified the basic problems in their branches which solution should be elaborated in conference. The leader of trade unions of the republic Gennady Grishunin has paid attention to the issue of organization of summer recreation for children: these duties are now made the task of regional authorities. Chairman of the Council of Veterans of the RK Nikolay Chernenko has informed on preparation for the 65 anniversary of the Great Victory and has told that the Decree of the President of Russia to provide housing to war veterans will be observed in its entirety. The Counsellor to the Administration of the Petrozavodsk State University Natalia Ruzanova has told about innovative activity of the university. Now there is an IT-park, soon there will appear technopark and business-incubator for students. The university intends to found innovative enterprises where its graduates will work. Director of Karelsky Okatysh Maxim Vorobiev and director of Pitkäyaranta factory Zoya Sorval have thanked the Government of Karelia for assistance rendered to the enterprises during the crisis period. Mayor of Petrozavodsk Nikolay Levin and Chairman of the Legislative Assembly Alexander Pereplesnin spoke about effective cooperation between authorities of all levels and joint activities in interests of citizens.

Head of Karelia Sergey Katanandov has made concluding remarks at the expanded session. As he said, the year 2009 was the most difficult for him since he has been filling a post of the Head of the republic.

– In the beginning of the year the production dynamics was negative, that has led to serious losses – the republic's treasury was short of more than 3 billion roubles of revenues. However, summing up, we state that the Government of Karelia together with the Government of Russia have managed to find solutions which have made it possible to stabilize the situation. Now the economy of Karelia starts to revive, – Head of the republic declared.

In Sergey Katanandov's opinion, prospects for this year are good, though it will not be easy either. In the first six months the postcrisis phenomena will keep developing, however volumes of production are already growing. Therefore, in the second six months the republic reckons on growth of the revenue base that will allow to carry out of all the budgetary obligations.