The Ministry of Finance of the Russian Federation: If nothing changes, by the end of 2017 we will not have reserves nor the ability to pay wages
Material posted: Publication date: 31-07-2016
Need any ways to increase the working age population of Russia, said first Deputy Finance Minister Tatyana Nesterenko, speaking on "the Territory of meanings".

"It needs to be targeted pension and social policy, politics in education and the social sphere", — she said.

According to her, it is also necessary to ensure the efficiency of labour and increasing economic activity and population mobility. Nesterenko noted that this will contribute to creation of comfortable conditions for workers.

The lack of reforms in the Russian economy may result in the expenditure of reserves by the end of 2017 and economic problems, said the Deputy Minister.

"If nothing changes, by the end of next year we will not have reserves nor the ability to pay salaries, we will have serious economic problems. The public sector is our main internal challenge," she said.

Thus Nesterenko recalled that in the period when oil and gas revenues "flowed" to the Russian budget, it was difficult to resist the temptation to start new projects, not to index pensions and wages.

"Our economy on this scale in which there are now, not respond to our commitments, which we gathered and which we must fulfill", — said the first Deputy Minister of Finance of the Russian Federation.

About 37% of the poor population of Russia — is a young family with two children, said Tatyana Nesterenko. "They have no shelter, they still did not create anything", she said.

Nesterenko said that this situation must change: "we must create conditions so that the poor among the young was not. Need to the woman quickly went to work, it needs kindergartens, etc."

The first Deputy Minister of Finance of the Russian Federation noted that in the category of the poor citizens of the Russian Federation gets only 5% of older people.

Nesterenko also said that the reduction of poverty in Russia is one of the key areas of effective fiscal policy. "The country cannot grow rapidly if there is a serious divide in society and if there are poor citizens. We need to create the conditions for poverty in Russia to eradicate as fact", — said Nesterenko.

With the need of reforms in the economy agrees Director of the Institute of socioeconomics of the Moscow financial and legal University Alexander Buzgalin. In his opinion, the reserves are depleted due to the fact that the income of the privileged part of society are not reduced, and the system of economic relations is not focused on development and economic growth through the use of human potential.

"If nothing changes in economic policy and economic system, it really raises the budget deficit and the money for salaries for public servants, including employees of education and health, may not be enough", — said the expert of the radio station "Moscow speaking".

According to him, the country has the reserves, but they can be used for full payments and even wages only after the redistribution of income. "Everything can be solved by pumping money from one pocket to another", — said the economist.

Among the possible ways to remedy the situation Buzgalin called the results of targeted loans for the development of key sectors of the economy, changes in the cost structure and the introduction of a progressive income tax.


Tags: Russia , economy