Source Pravda.Ru

PM Says Unregistered Operations Make Up Not More Than 18% Of Russian Economy

The shadow (unregistered) segment of the economy is not more than 18% of the total volume now, Russian Prime Minister Mikhail Kasyanov said. He pointed out at a news conference devoted to the results of today's government meeting that according to estimates, the share of unregistered operations was between 25% and 30% in 1999, the corresponding figure for 2000 was about 20%, and the estimate for 2001 was about 20%. Nonetheless the analysis of the work of the economy in the third quarter of 2001 "discovered the fact that the share of the shadow sector had reduced by further 2%. Therefore, its share is not more than 18% now." In order to further reduce the shadow sector, the Russian government intends to suggest a set of tax reforms and measures to legalize wages. "If the present trend becomes stronger, we will be able to cope with such a serious illness as the shadow sector in the country's economy," he remarked.