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ST. PETERSBURG, October 24 (Itar-Tass) —— The Russian government will earmark 20 billion roubles in support to small business in 2012, Vice Prime Minister Dmitry Kozak said.
“Small business ensures sustainability” of the national economy and “its potential in Russia is tremendous”, Kozak said at a meeting with representatives of small business in St. Petersburg on Monday, October 24.
“Owing to systemic measures” and annually “increased preferences” small business in Russia has been developing quite rapidly in recent years and currently employs about one-fourth of able-bodied people in the country.
At the same time, Kozak noted, “We are still lagging behind European and North American countries where the share of small business is about 60 percent compared to 25 percent in our country. This is something to work on.”
He promised further support to small business in Russia but stressed the need for a balanced approach: tax cuts can only be justified if they lead to the creation of new enterprises and growth of production and therefore budget revenues.