The Ministry of economic development launched the business costs calculator


The Ministry of economic development launched the “calculator standard business costs”: on may 27 this public tool has appeared on the website regulation.gov.ru. It aims to help developers laws to calculate in advance the consequences of new regulations — an additional burden on businesses and budgets. Announcing a new feature in a press release on 25 may, the Director of the Department of regulatory impact assessment (RIA) the Ministry of economic development Vadim Zhivulin referred to the non-stop “normative printer: if it didn’t slow down, “choke” not only business, but also the entire legal system. “Through the regulatory impact assessment every day there are acts in the basis which bears no calculations whose developers did not project the consequences of their proposed regulations,” he says.

Cost calculator — a new element of the Institute of regulatory impact assessment, which since 2010 is implementing the Ministry of economic development. Tool created for developers of laws and not designed to assess the effectiveness of a normative act. “Standard costs are out, and the standard that they do not include various features of the regulation, they cannot be used as a criterion for determining the effectiveness of regulation,” — said the expert nisipp Nikolai Smirnov, who participated in the development of the calculator. A legislative initiative arise ad hoc and are made without a serious analysis of the market, explains the meaning of innovations Zhivulin. “I don’t know how much it will cost — well, okay. Make a decision — and then life will show” — so, according to him, arranged the current practice of rulemaking.

The purpose of the introduction of the calculator, according to him, not even the fact that everyone was counting all the possible costs, and to set a standard methodology and common requirements to work with the regulatory act. “We need to educate our colleagues, and ourselves gradually move to this model to become the base,” says Zhivulin. The idea is that over time, this process took on the character of the current work.

“Norm-setting”printer

Institute of RIA, Ministry of economic development started to implement in 2010, that was prepared more than 4,600 reports on ODS, more than a third of which is negative. On a monthly basis in relation to 30-40% of the acts projects undergoing regulatory impact assessment, the conclusion about redundancy and cost requirements. Annually developed more than 24 thousand new regulations. “We have a constantly growing administrative burden, and it’s the same financial burden, because all these requirements is a pure cost in rubles for specific enterprises. Every new requirement seems very logical, it is justified, but we always find ourselves in a horrendous spiral of increasing costs”, — said in October 2015, Deputy Minister of economic development Oleg Fomichev.

How it works

The calculator works this way: it introduced a lot of constants, which take into account all the possible consequences of adopting a new legal act, such as the increasing burden on entrepreneurs, the material and time costs, the burden on the budgets of different levels. The developer of the act is to enter the necessary data on the proposed change, and the system will calculate the costs. If the database is not necessary a constant for calculations will be applied by official statistics or expert assessment. Nikolay Smirnov of nicip recognizes that not all costs can be calculated as constants. He expects that the database will form the standard costs for a few years, as they gain experience of calculating costs and with the active participation of business representatives.

“The beauty is that the authorities will not have to search for data in all statistical collections, and for certain kinds of standard costs they will have to open the drop-down lists of constants” — says Smirnov.

According to the methodology presented by the Ministry of economic development (the document is available), standard costs are divided into information and meaningful. Information related, for example, providing authorities with the necessary documents and information, as well as the storage of information; content with the fulfillment of other requirements, such as installing equipment or hiring additional staff.

The size of both types of costs as the sum total of “labor” and “acquisitions” in monetary terms: the work time that employees spend on the implementation of the new requirements, and their wages plus the cost of purchasing necessary equipment, supplies, staff development (accounted at the average market price of the relevant goods or services). The scale of the new requirements (that is, the number of organizations employees, whom they will affect) will be determined using estimates or has already formed the Ministry of economic development, using available statistics, either taken from studies and based on expert opinion.

Foreign experience

Projects similar to the standard calculator of costs exist in many countries. For example, in the UK, there is Impact assessment calculator that enables you to measure the total administrative burden on business and to simulate its change. In Sweden, these functions are performed by Malin information base, which allows you to track and to predict the change in administrative burden in time. In Germany the system works WebSKM, in Belgium — SAMBAL.

Now the Ministry of economic development legislative initiative checks for reasonableness of costs, and with the introduction of the calculator this need will not disappear. The regulators themselves will choose, at what cost to evaluate, for example, labor costs (the average salary in Russia, according to industry, there is no one standard of remuneration, etc.), so there is an incentive to choose the lowest measure, if some Agency wants its initiative to hold. However, each parameter used must be justified, and the Ministry of economic development will be to check the calculations on their conformity to reality. Assessment and its justification submitted by the requester of the new requirements, will be disclosed on the website regulation.gov.ru.

The work of the calculator in the Ministry of economic development showed the reporter on the example of the introduction of compulsory tachographs for passenger buses (device, recording speed and mode of work of drivers). The Ministry is examining this initiative within the framework of the ODS in 2013. According to traffic police, all buses, which fall under the regulation, a little more than 509 thousand This constant had to find the “manual mode”, as in already loaded into the system data bases it was not. However, all verified by the Ministry of the constants are there to be added, and eventually a built-in database of the calculator will be more complete. The purchase of one device will cost 35 thousand RUB. To install it you need about 4 hours. 3-4 hours every two years should be spent on its maintenance. The calculation in the system is made for one calendar year, respectively, on the maintenance sets for two hours. Assessment in monetary terms is constructed using the average monthly wage in Russia — 32.5 thousand rubles. in 2014, according to Rosstat. Total for equipping with tachographs in the first year the industry will spend about 18.5 billion rubles. In fact we are talking about the “lower bound”, says Vadim Zhivulin: to this list we can also add other costs associated with, say, idle time of buses due to the new requirements.