Putin instructed to overcome poverty in 2023: what is the reaction of officials

Poverty in Russia takes on a protracted and chronic character. It is no coincidence that at the first meeting of the government this year, along with other urgent problems, Vladimir Putin called the fight against poverty and social inequality a priority. How realistically will we be able to move forward in 2023 – a defining and decisive year, as they used to say in the old days?

The President urged to build the economic policy of the state in such a way that it would lead to an increase in real wages of Russians and a reduction in the level of poverty. To provide social support measures, especially for families with children, to further improve the standard of living and reduce inequality in society.

In the current conditions, when the country is subject to economic sanctions from all sides and when oil revenues are falling, you need to have seven spans in your forehead to fulfill the president’s order.

It is believed that for the successful implementation of the anti-poverty program adopted in 2020, it is enough to invest 500 billion rubles a year: for various payments and subsidies, and the creation of various mechanisms for accumulating funds.

However, now such a maneuver is unlikely to succeed. Last year, budget expenditures exceeded revenues by 3.3 trillion rubles. Where will the government find these same 500 billion in the treasury?

Most likely, there will be no turning point in 2023, the Cabinet of Ministers “will not hear” Vladimir Putin’s calls. Former Deputy Minister of Labor of the Russian Federation Pavel Kudyukin does not advise this year to be particularly deceived by an increase in income and living standards. “In the context of the growing economic crisis, this is unlikely,” he said.

According to Rosstat, there are more than 19 million people in the country who live below the poverty line, and this line itself, so to speak, the watershed separating a decent life from a miserable existence, is 14,375 rubles.

The army of the poor, as we see, is rather big. But in fairness, it should be noted that there have been worse times in Russia. Thus, in 1995 and 2000, the number of poor people was 36.5 and 42.3 million, respectively. That is, since Vladimir Putin became president, the number of poor people has more than halved.

But, to tell the truth, this decrease did not give any noticeable progress in society. Both then and now, political parties are calling on the government to introduce food stamps for vulnerable segments of the population, to index pensions for working pensioners. In general, “something needs to be done.”

What and how? The poverty alleviation program is constantly in the focus of attention of the authorities. In the zero years, it was even planned to overcome it altogether – completely and completely. However, then the dates began to shift. It was decided to halve the poverty rate by 2024, then by 2030.

In 2020, the Cabinet of Ministers has developed a literally step-by-step “instruction” to increase maternity capital and social benefits. But inflation is growing faster than our income. And everything should be exactly the opposite. The President has set a task: the minimum wage (minimum wage) should be ahead of the subsistence minimum – PM. At the end of last year, the ministers reported that this was indeed the case. Since 2023, the minimum wage in the country has increased to an average of 16,242 rubles. And the cost of living rose by 13.5% and is 14,375 rubles. The task, it would seem, has been solved, especially since, according to the new methodology, the minimum wage should be 3% higher than the subsistence minimum. However, the number of poor people has not decreased.

According to analysts, all these are targeted measures, and they do not give results, at best they restrain growth, but do not reduce it in any way. The head of the Central Bank, Elvira Nabiullina, believes that it is better to fight this social vice through inflation. She and only she is able to reduce the number of the poor in the country. The regulator even proposed to introduce an increased rate for the deposits of poor citizens. So that the amount of 200-300 thousand rubles would accumulate large interest.

But where do the poor get such sums from? If you save 100 rubles from your income for a rainy day, then you can save 1,000 rubles in a year, 10,000 rubles in ten years, and 100 thousand in 100 years.

No, the option is not suitable for those who live from allowance to allowance. The Russian regions are not aloof from the fight against poverty either. The indicator that spoils the oil painting is reduced in different ways. They do not want to recognize as the poor those who do not know how (or do not want) to make a profit from their real estate. Suppose he has an extra apartment, but does not want to rent or sell it. And for benefits from the state in the forefront.

Somewhere regional deputies propose not to pay benefits to those who own a yacht or a premium car. Officials are haunted by a vegetable garden outside the city. Not only do people feed on their acres, they also sell the surplus, but do not pay taxes. In general, who is in what much.

And the general problem, at least this year, the authorities are unlikely to deal with seriously.

How is the poverty line determined? The percentage of that part of Russians who have incomes below the subsistence level is calculated, says Pavel Kudyukin. – The technical way to fight poverty is very simple – you need to underestimate this indicator, and then there will be fewer poor people. It will turn out that the real salary or other incomes of the population are higher than the subsistence level.”