The necessary State financial support to the Russian economy and citizens during the coronavirus pandemic, using online services

Abstract

Subject. The article assesses the State financial support to the Russian economy and citizens during the COVID-19 pandemic, using online services. Objectives. The aim is to assess the value and significance of the State financial support to businesses and individuals during the pandemic and determine its impact on the decline in GDP growth and income of the population. Methods. We employ the following methods: systems analysis, economic, statistical, abstract analysis, expert assessment, analysis of scientific and information base, synthesis of obtained data based on principles of interrelation, consistency, and proportionality. Results. The paper offers measures to prevent the disruption of production chains due to non-payments and to support consumer demand. The Russian government should allocate at least 10% of GDP to support the economy and citizens, which will amount to 10 trillion RUB. The said support will enable to reach the level of pre-crisis 2019 by the end of 2021. Conclusions. Other measures include an increase in the cost of direct payments to citizens and small businesses from the State budget. It will reduce the burden on businesses and generate consumer demand. A reduction in the weighted average interest rate on loans to 5–6% per annum will result in the significant growth of lending to the real sector. The government should also soften regulatory measures or cover some costs by providing guarantees to banks. We conclude that the Russian Federation has a great number of online services that are powerful, effective, and competitive in the global market.