Matviyenko: Russia needs budget of hope and success
Speaker of Russia’s Federation Council, Valentina Matviyenko, took part in the parliamentary hearings "On the parameters of the Draft Federal Budget for 2017 and the 2018-2019 Planning Period".
"We need a budget of development, a budget of hope, a budget of success," she stressed, noting that the main financial document should be the driver of economic growth, the implementation of technological independence policy, increase in productivity and infrastructure development. "And most importantly it should improve the quality of life of our citizens," the head of the upper house of the Russian parliament said.
According to Matviyenko, curbing domestic demand and real incomes of the population is unlikely to help overcome the stagnation in the economy. However, she believes that the optimization of the costs is a justified measure to balance the budget.
"It is highly doubtful that the stagnation can be overcome by inhibiting the growth of real incomes of the population and the decline in domestic demand," TASS cited her as saying.
Recall, the draft federal budget for 2017 and the 2018-2019 planning period was submitted to the State Duma on October 28. According to the document, the budget deficit in 2017 will amount to 2.75 trillion rubles (3.2% of GDP) and will be gradually reduced to 1.14 trillion rubles (1.2% of GDP) in 2019.
A professor of the RANEPA Chair of Economics and Finance of the Public Sector, Lyudmila Pronina, told Vestnik Kavkaza that, on the one hand, the current draft budget retains social obligations, but on the other hand, it is aimed at the development.
"The formula of any growth in the economy is innovation, investment and human capital," the expert recalled.
She said that, according to the draft budget, investments are gradually increasing, throughout the three-year plan. "In 2017, Russia's GDP is indicated at 0.2%, in 2018 they expect investments to increase by about 2%. This is one of the sources," the professor of the RANEPA Chair of Economics and Finance of the Public Sector noted.
Speaking about innovations, Pronina pointed out to the territories of advancing economic development in the Far East, as well as to the special economic zones, some of which show very good development, for example, the airport area in the Ulyanovsk region.
Speaking about the health care, the analyst expressed concern about the fact that the deficit in the Fund of obligatory medical insurance has exceeded the level of 500 billion rubles.
The expert welcomed not only the prolongation of a one-time payment to all pensioners, except for the military, for 2017, but also indexing, considering the level of actual inflation. "There will be even the indexation for non-working pensioners, considering the actual inflation of 5.8%, it is a good thing as well," she said.
In summary, the expert explained that one can hardly claim any significant GDP growth during the economic crisis.