Kudrin proposed to postpone the increase of salaries to state employees – RBC

the Ex-Finance Minister Alexei Kudrin

Photo: Oleg Yakovlev/RBC

Ex-Minister of Finance Alexey Kudrin suggested to postpone the execution of the may decrees of the President concerning growth of salaries to state employees. According to him, the salary should be increase only by increasing income

Former Minister of Finance, the head of the Foundation Council of the Center for strategic research (CSR) Alexei Kudrin, speaking at a business Breakfast Sberbank in Sochi, proposed to postpone the execution of the may decrees of the President related to the increase of salaries of state employees. According to him, the implementation of this decree should be postponed to “better perform in a compressed budget these obligations.

Kudrin has reminded that, according to forecasts, in the next three years, payroll funds in the regions of Russia is expected to grow in the framework of implementation of decrees of the President of the salary for the sum from 500 billion to 800 billion. He called such actions “a dangerous distraction”.

“to raise wages at prestudy income, we must reduce the repairs of schools, provision of equipment and relevant materials for hospitals. This dangerous maneuver,” — said Kudrin.

“These objectives need to leave for the longer term, but right now, given the fact that our economy is falling and we have revenue growth will not be as fast, you need to increase the wages only by increasing revenues,” Kudrin said (quoted by “RIA Novosti”).

He added that in the case of increasing cost of labour in the public sector will have distortions in the real sector, in which wages will not grow as rapidly. “And we will create a new competition with the real sector at the cost of labour”, — added ex-the Minister of Finance.

In early September, Reuters, citing a source in the government reported that the Ministry of Finance has proposed to freeze the salaries of public servants for the next three years. This measure will not apply to doctors, teachers, figures of science and culture, noted the Agency.

Previously, the newspaper “Vedomosti” reported on the Finance Ministry’s proposal to reduce defense spending in the next three years by 6%. One of the sources claimed that 1% of the proposed savings will reallocate to priority programmes and projects.