Should we expect economic growth in 2020?
In the Russian economy, growth of more than 2% will not occur in 2020. In order to increase the pace of development of the financial sector serious institutional changes are required, Forbes reported.
An ambiguous situation has developed in the economic policy of Russia. The President announced support for national projects, after which the ministries began calculations to find out how much money would be needed for this. It turned out that about eight trillion rubles were needed for six future years. When the funds were found, it turned out that the government couldn’t spend them.
This is due to the strict conditions for the allocation of budgetary funds. Large businessmen who have contacts in the state apparatus have access to them. As a result, the state cannot manage budget money, but continues to take it away from citizens. The example is pension reform, which will freeze savings, as well as an increase VAT for more than 20%.
The state understands that it decides what the funds will be spent on, but it doesn’t know how to dispose of them. The government also realizes that it cannot count on deposits from foreign or private investors. The withdrawal of funds from capital shows that entrepreneurs are wary while investing in Russia. The situation has become especially aggravated after the introduction of new sanctions.
Without getting funds and increasing economic growth, it is impossible to achieve an increase in wages of the population. One way or another, the government will be forced to carry out reforms.
From this year to 2024, the problem of power transit will be acute in the economy and management. In this situation, either another leader of the country is needed, or changes in the Constitution. This will mean a redistribution of funds and powers in the government. How this will happen is anything but certain.
Nevertheless, there is room for budget allocation in Russia. It needs to be invested in infrastructure, as well as in the capital of citizens. But distribution will be effective only in the absence of corruption.
Economic growth can hardly be expected without reforms that can restore confidence in government.