Putin called the stable situation in the public sector

On August 22, Russian President Vladimir Putin chairs a meeting of the Council for Strategic Development and National Projects via video link. In his opening speech, the head of state noted the stable situation in the public sector and the growth of inflationary risks, and also drew attention to problems with the birth rate.

Putin noted that despite the difficulties of Russian business last year, economic growth has been outlined since the third quarter, the pace of which is now quite stable. In the second quarter of 2023, GDP grew by 4.9% compared to the same period last year. At the same time, the president stressed that non-mining industries are growing at a faster pace.

It is necessary to maintain positive dynamics in the industry, he added, noting that by 2030 investments should add at least 70% in real terms compared to 2020.

The head of state described the situation in the public sector as stable. According to him, today there are no risks for macroeconomic stability. “It is expected that in July-September the budget will be reduced to a surplus. In general, over the year, the excess of expenses over income will be at the planned level – about 2% of GDP,” the head of state specified. In the second quarter, the deficit decreased by almost eight times compared to the previous period and amounted to 264 billion rubles, and in July the budget balance turned out to be 458 billion rubles. better than a year ago, Putin added.

He also noted that the task of restraining price growth is coming to the fore, as inflationary risks are growing. “I know that there are many disputes here, but we have always found a consensus so far, and we will find it now,” Putin said.

At the same time, Putin drew attention to the fact that Russian companies practically do not place shares on the domestic stock market and called for better results. “Since the beginning of this year, only two initial placements have taken place, by the way, they were successful. I know that the Central Bank and the government are working in this area. <...> It is necessary to significantly increase efforts and achieve concrete, tangible results,” the head of state urged. The President also advised the government and the Central Bank to make more active use of their tools to reduce volatility in financial markets.

The head of state recalled that one of the tasks set at the previous meeting in December 2022 was to ensure the financial sovereignty of Russia. In this context, a separate topic is the creation of “long money”. The President recalled that the program of voluntary long-term savings will start working in 2024. “This tool will allow citizens to receive additional income in the future or create a “safety cushion” in the future in case of special life situations,” he said. At the same time, Putin added that in the first half of the year, real disposable incomes of Russians grew by 4.7%, while in 2022 they decreased by 1%.

During the meeting, Putin acknowledged that the situation with the birth rate in Russia is still difficult. “So far, fewer children are being born in Russia than a year ago,” Putin said, instructing the government to help the regions implement a program to increase the birth rate. According to him, the task is to support families and “traditional values, to unite the forces of the state, society, religious denominations and together achieve a turning point in the situation.”