Igor Shuvalov: the falling income of Russians has ended – Economy News

Print Falling incomes of Russians has ended, said first Deputy Prime Minister Igor Shuvalov. Incomes

“Incomes are not growing as we would like. But we note that for some groups of the population real incomes are still little, but growing. The income decline is over. Hope next year still, it will be the trend for all groups of the population, income will grow. And consumer demand should next year come to life. Now consumers behave quite carefully,” – said Shuvalov at the forum “Russia-Singapore”. Meanwhile, almost 60% of Russians said about the increase in costs over the past year, and 50% of respondents predict that in the coming year, spending will also increase, according to a survey conducted by the public opinion Foundation (FOM). Only 9% of Russians said about the reduction in costs over the past year, while spending 28% of respondents were “virtually unchanged”.

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almost 30% of respondents said that someone from the family members began to earn less, lost a job or a side business. 10% of Russians said that last year the total income of their families has decreased. 56% of respondents reported no change in the total income of the families.

the Survey was conducted November 13 among 1,5 thousand Russians at the age from 18 years to 53 regions of Russia, 104 localities. The statistical error does not exceed 3.6%.

According to Rosstat, real disposable cash incomes of Russians in October fell 5.9% on year vs. 1.5% in September and 8.2% in August, 7% in July to 4.5% in June, 6% in may, 7% in April, 1.3% in March, 4.3% in February and 5.8% in January. In General, incomes in real terms declined in January-October by 5.3% in annual terms.

per capita income was in October of 30.9 thousand rubles (+ 0.2% in annual terms).

the average Monthly nominal wage amounted in October 36.2 thousand rubles (+ 8.2 per cent). In real terms the average salary in October was up 2% yoy.

privatization Plan for 2017

meanwhile, the privatization plan for 2017 still to be fixed, the government a lot of controversy, said Shuvalov. “The document was released only in the government with a large number of differences. We’ll practice. Yet to talk about the privatization plan for early 2017,” – said the first Deputy Prime Minister.

the Decline of Russia’s GDP

Russia’s GDP may shrink in 2016, 0.6-0.7%, but Russia’s economy is given in “working condition” and in 2017, GDP will increase by 1%, said Shuvalov.

“last year we experienced a significant decline in the growth rate. This year we will finish, most likely, with a negative growth of 0.6-0.7%. Already we are seeing slow, but growing. Month-to-month, the Russian economy is growing. I hope that next year this growth will be 1% or more that the Russian economy is not enough, but at least positive growth, not lack of it”, – said the first Deputy Prime Minister.

According to Rosstat, the GDP decline amounted in January-September by 0.7%, which coincides with the data of the Ministry of economic development. At year-end, the MAYOR predicts a GDP contraction of 0.6%.

the Possibility of merging the Ministry of Finance and Ministry of economic development

as for the possibility of a merger of the Ministry of Finance and economic development, “I know nothing about it,” said first Deputy Prime Minister.

Financial and banking sector become stronger

Russia’s Financial system is getting stronger and more stable, said Shuvalov.

“the Banking sector is getting stronger. Insurance companies have period of the new insurance market. Private pension funds are becoming committed in a different state, be legally justified. This is a completely different structure, manifested their shareholders, created a database to accumulate for future retirees. The entire financial and banking system becomes much more stable,” – said Shuvalov.

Where to direct the funds from the commodity sector

Revenues from the commodity sector must be communicated to budget expenses and to replenish reserves. “The future of the Russian economy is, of course, not raw. The commodity sector will continue to grow, and rightly so. But the money from the commodity sector should not be sent to budget costs. These funds, which will state in the form of taxes, to preserve for future generations.

we Have reserve funds. We need these funds at the expense of the money to replenish. And learn to live and spend what is given to other development, other sectors, including services. Some new types of industry in the economy appear. We notice that most of the competitive modern economy emerges in Russia,” – said the first Deputy Prime Minister.

the Dependence of the budget on revenues from oil and gas sector large, despite the fact that revenues from the commodity sector decline amid falling oil prices. However, in the 2017-2019 biennium. the Ministry of Finance intends to prepare for the introduction of a new “budget rule”, which requires to reduce the size of the non-oil deficit over three years by 3% to 6.5% of GDP.