Economic Conditions

The policy of "smooth" entering the market which envisaged greater attention of the state to retaining the industrial and agrarian potentials of the Republic, to maintaining the sufficient living standard and to conducting the weighted and efficient privatisation brought its positive results.

The predominant role in the economy of the Republic belongs to industry. It preserved its manageability and the major part of its infrastructure. Some companies even achieved a certain increase in production volume. The overall drop in production was not so dramatic in Tatarstan as compared with Russia in general.

The characteristic features of the economic situation in the Republic are permanent decrease of the rate of inflation and the tendency towards stabilisation of volumes of industrial production. For the first half of 1996 the index of physical volume of industrial production made up 102.1% as compared to JanuaryJune 1995. The gross added cost (the economic index which is close to gross domestic product in economic content and value) made up 35,767.9 bln Roubles in 1995 (98.6% as compared to 1994), and in JanuaryApril of 1996 it made up 12.1 trln Roubles (97.8% as compared to the corresponding period of 1995). Investments in the fixed capital in JanuaryJune of 1996 made up 3,416 bln Roubles.

In 1995, the expenditures of the state budget made up 6,980.7 bln Roubles, and the deficit made up 30.3 bln Roubles. For the period between January and May, 1996 the articles of revenues of the budget made up 2948.9 bln Roubles, while the articles of expenditures 3635.8 bln Roubles.