The administrative load on business must be reduced

18 january 2019

During the expert discussion at the Gaidar Forum, deputy head of the Analytical Center Mikhail Pryadilnikov talked about estimating the effectiveness of the reform of the monitoring and supervision activities.

According to Mr. Pryadilnikov, it was assessed against targets that are important to all beneficiaries: the state, business and society. The effectiveness and efficiency of the reform for the state was assessed using an index summarizing the quality of the administration of the monitoring and supervision functions, for business this translates into a lower administrative load, while for people this means fewer fatalities, traumas, diseases, poisonings as well as less financial losses. 

The index was calculated using indicators developed by various departments as well as results of independent polls of inspectors, business representatives and individuals. The expert stressed on the sociological polls of businesses being conducted by the Analytical Center and organized to estimate the administrative load index. The last such poll involved an online survey of 8,638 entrepreneurs in May-July 2018 through questionnaire.

Comparing the results of the polls conducted in 2018 and 2017, Mr. Pryadilnikov noted that over the past year the administrative load fell for all categories of business, first and foremost as a result of reduction in time spent on completing various monitoring and supervision activities. At the same time, the subjective perception of the administrative load varies from significant reduction as estimated by medium sized business to insignificant increase as estimated by small and major companies.

On the whole in 2018, a little bit less than a third of all companies surveyed perceive the administrative load as low, almost a quarter see it as medium, and over 40% perceive it as high. In the survey, the entrepreneurs also noted significant financial expenditures to update the software as a result of changes to report forms, the time spent on tracking changes resulting from the reform and changes in the legislation and involvement of more employees for preparing documents for audits by monitoring and supervision authorities.

"The survey found that in order to reduce the administrative load and allow the monitoring and supervision authorities to make effective decisions, the following spheres of the activities improvement can be recommended: informing on the requirements, relevance and justification of requirements, remote interaction, document-based audits, preventing violations," Mr. Pryadilnikov said in conclusion of his presentation.

Photo from open sources