Oct 12, 2020
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Kudrin called a possible decline in Russia’s GDP in 2020

The head of the Accounts Chamber of the Russian Federation, Alexei Kudrin, said that the government's forecasts for economic growth in the country in 2020–2023 are too optimistic. According to him, they do not take into account the second wave of coronavirus.

In 2020, the decline in GDP may exceed 5%, and in 2022–2023 the economy will grow at a rate of no more than 2.5%, noted Kudrin in an interview with TASS.

It is highly likely that this year will also be closed with lower indicators, and in the first quarter of 2021, the Russian economy will have to face certain difficulties., - says the head of the Accounting Chamber.

He assumes that the losses for small and medium-sized businesses from restrictions will turn out to be greater than the government expected. Therefore, Kudrin is sure, it is necessary to increase budget spending to support the economy.

We have not yet come out of the crisis, and I believe that we have enough resources to make the budget softer in terms of increasing spending and supporting the economy, which needs it. We do not have enough funds to invest in infrastructure, healthcare, education. I think we should definitely increase expenses- Kudrin emphasized.

The government plans to reduce by 10% in a number of areas in 2021, but this could have been abandoned, the head of the Accounts Chamber suggests. He noted that there is not enough workforce in Russia and the working-age population is shrinking, so the state budget should be allocated differently.

Earlier reported that the Russian government, when forming the draft federal budget for 2021-2023, proceeded from the improving situation with the coronavirus. According to Deputy Speaker of the State Duma Alexander Zhukov, the government believes (and this is laid down in the draft federal budget) that economic growth will be observed in 2021. At the same time, the Cabinet of Ministers approaches financial planning from a conservative standpoint.

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