Russian public spending hits post Soviet record high

RUSSIA / FSU POLITICS - In Brief 25 Mar 2021 by Alex Teddy
On March 23 data was published showing that in 2020 public spending was at its highest in real terms since the end of the USSR. The government spent more to negate the impact of coronavirus.If you consider regional spending as well as federal spending as well as off budget spending by government funds the total spend was USD 560 billion. Taking inflation into account this is at its highest since the 1980s.The government started to increase welfare payments for children and to raise the dole. Russia's stimulus package is modest compared to Western nations. The IMF and World Bank lauded Russia's efforts though. Social spending rose. 2.5 times in 2020. Healthcare spending went up 30%.The state spent 39.5% of GDP that is 5 percentage points higher than the average for the previous 10 years. 36% of household income is now dependent on the state.In 2021 the state aims to slash spending and retrench. The aim is to balance the budget if possible. Government debt is 20% of GDP and the state intends to keep it like that.

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