Kudrin expects rising poverty in Russia

On March 12, 2020, the head of the Russian Audit Chamber, Alexei Kudrin, warned that humanity is facing another global crisis, therefore, it expects poverty to increase in the country in 2020. The head of the department made his statement during a speech at a meeting of the Federation Council Committee on Financial Markets, while discussing amendments to the federal budget.

We face the challenges of at least poverty reduction. Unfortunately, there may even be an increase

- said Kudrin.

The current crisis may be quite sensitive

- added Kudrin.

Kudrin recalled that during the previous global crisis (in 2008), the locomotive of the world economics was china. However, the situation is completely different now, since China has been severely affected by the 2019-nCov coronavirus infection (COVID-19).

The head of the Accounts Chamber explained that, while preparing amendments to the 2020 budget, the country's authorities tried to implement the instructions given by the Russian President to the Federal Assembly. This should have significantly reduced poverty in Russia.

Obviously, the growth rate planned for this year - 1,9% - is most likely unattainable. If the oil price is about $ 35, as it is today, then I see the risks of reducing GDP growth to zero practically, maybe even a negative effect

- emphasized Kudrin.

Kudrin noted that a small positive economic growth in Russia could happen if the price of oil is about $ 40- $ 45 per barrel (1 barrel - 159 liters). At the same time, he clarified that inflation could rise to 6% or even higher. Naturally, this will negatively affect the flow of investment. In addition, he drew attention to the fact that the federal budget, while maintaining the current exchange rate and oil prices, would lose about three trillion rubles.

Accordingly, there will be lower investment ... compared with the previous year. These are new realities.

- considers Kudrin.

If even today we were guided by the value of today, which now - the price is about 35 dollars and the ruble exchange rate is about 72 rubles per dollar - then we will not receive oil and gas revenues of about 3 trillion rubles ... And below the cut-off price we will not get about 500 billion rubles

- said Kudrin.

According to Kudrin, Russia's federal budget deficit could reach 2% of GDP. That is, previous (pre-crisis) financial forecasts can no longer be perceived as realistic. And this must be reckoned with. Therefore, Russia may face an increase in poverty, despite the measures taken by the authorities to reduce it.
  • Photos used: duma.gov.ru/wikimedia.org
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  1. GRF Offline GRF
    GRF 13 March 2020 13: 36
    Surprise, tell me when the Russians will begin to get rich ...
  2. Potapov Offline Potapov
    Potapov (Valery) 13 March 2020 16: 20
    The growth of poverty is a natural process of capitalism.
    1. Arkharov Offline Arkharov
      Arkharov (Grigory Arkharov) 14 March 2020 07: 46
      If it was capitalism. Something in normal democratic capitalist countries is more often the opposite.
  3. Observer2014 Offline Observer2014
    Observer2014 13 March 2020 20: 21
    Kudrin expects rising poverty in Russia

    And the "nekudrins" from the authorities probably expect the growth of the non-poor in Russia. laughing
  4. Marzhecki Offline Marzhecki
    Marzhecki (Sergei) 14 March 2020 09: 05
    Quote: Arkharov
    If it was capitalism. Something in normal democratic capitalist countries is more often the opposite.

    What kind of countries, specifically? And how often does this happen, compared to what?
    1. Arkharov Offline Arkharov
      Arkharov (Grigory Arkharov) 14 March 2020 18: 24
      Well, for example, most of the first 40-45 countries in this ranking.


      There you are in 59th place, you can even find the Russian Federation. Just don’t start sprinkling with "individual shortcomings of individual countries", like: "But in Poland apples rot and in general there are solid Russophobes." Here everything is assessed in a complex and without politics. And suspiciously, in most cases, the standard of living correlates with the regular turnover of power.
      1. Oleg Rambover Offline Oleg Rambover
        Oleg Rambover (Oleg Pitersky) 15 March 2020 01: 09
        Quote: Arkharov
        And suspiciously, in most cases, the standard of living correlates with the regular change of power.

        These are the machinations of enemies.
        1. Arkharov Offline Arkharov
          Arkharov (Grigory Arkharov) 15 March 2020 08: 25
          Of course, machinations !!! Shitting, shitting ... Specially pretending that it’s better so that we are led off the true path !!! But we all know how best !!! I nevermind them !!!
  5. boriz Offline boriz
    boriz (boriz) 15 March 2020 11: 55
    But what if we make the drop in income begin with officials and deputies? After all, this is the result of their work ...
    I think it should help. If Kudrin is not able to come up with a wage system for them, I will help easily. I have extensive experience working with pieceworkers in the USSR. This is just the case: the desire to receive money is much more than the desire to work.