Budget-2018 does not provide for radical economic change
The Russian government approved a draft federal budget for a three-year period of 2018-2020. Expenses were increased by 300 billion rubles in 2018 and by 200 billion rubles in 2019. Speaking at a press conference to discuss the package of draft laws on the federal budget for a three-year period of 2018-2020, which were submitted to the lower house of parliament, the chairman of the State Duma’s Financial Market Committee, Anatoly Aksakov, said that for the first time in recent years the consideration of the budget will be based on the positive moods.
"For the first time, relatively good GDP growth is envisaged in the draft budget - 2.1. And, in my opinion, it will be more than that. The government is very conservative in this case. If we evaluate the draft budget as a whole, in addition to the positive, we should also note the serious conservatism of the executive branch. The government believes that exports of our products will grow at an accelerated pace, with the main focus on non-oil and gas exports. I think the government is covering its bases. Obviously, within a year we will review the budget parameters, since the pace of this year will be higher than the government forecast's one for the next year," Anatoly Aksakov said.
"Real wages will grow for the first time in recent years. Moreover, in my opinion, it will be quite significant growth of more than 4%. The growth of investments in the next year is also encouraging - 4% or more. By 2020, this indicator will increase by 10%. Accordingly, investments will determine our image of the economy," the chairman of the State Duma’s Financial Market Committee said.
"As for inflation of 4%, I am pleased with it, because this year the inflation rate is expected to be 3.2%. The 4% inflation target means that we will pursue a relatively soft monetary policy. The Central Bank will have to significantly reduce the key rate to maintain the inflation at the level of 4%," the deputy believes.
Among the positive aspects, he also noted the increase in spending on education, health and science: "Education is the key to future economic growth, the country's successful development. Expenditures on education will increase by more than 6%. Growth in health care expenditures is estimated at 15%. Expenditures on science will also increase faster than inflation - by 7.4%. At the same time, spending on national defense is reduced. Security expenditures is fairly stable. What's happening is that the liberals recently called for - a decline in defense spending and an increase in expenditures on economic development, education and science. "
"On the whole, this is not a development budget, of course, not a budget of radical economic change. But this is the budget of stability and progressive economic development," Aksakov assured.