Russia prioritizes improving people's quality of life and national defense
Russian President Vladimir Putin outlined the main priorities of the federal budget for 2025-2027, which will be mainly devoted to social support and improving the quality of life of citizens, strengthening the country's defense capabilities.
According to RT, to achieve national development goals, Russia needs to maintain a responsible budget policy and ensure the sustainability of the entire public finance system. Russian President Vladimir Putin said at a meeting on economic issues discussing the draft federal budget for the next three years on September 17: “The priorities in government spending remain social support for the population, strengthening the country’s defense capabilities, integrating the Donbass and Novorossiya regions, as well as technological development of the domestic economy and the social sphere, expanding and strengthening infrastructure, renewing cities and towns, and improving the quality of life of citizens.”
According to Mr. Putin, the launch of new national projects from January 1, 2025 will help achieve positive changes in all areas of life and ensure the long-term, progressive development of Russia: “Family”, “Active Life”, “Youth of Russia”, “Human Resources”, and “Data Economy”. These initiatives are aimed at increasing the birth rate and life expectancy of Russians, supporting the younger generation, dealing with labor shortages, and creating a digital foundation in key sectors of the economy.
“For this to be successful, it is necessary to provide financial resources and allocate them to the federal budget in the necessary amounts. Strategic decisions on adjusting the tax system will be effective, and it needs to be built to be fairer and more efficient,” the Russian leader added.
According to RT, Russia's draft budget for the next three years will be built on the basis of the country's socio-economic development forecast. Accordingly, in 2024, Russia's GDP will increase by 3.9%, in 2025 - 2.5%, in 2026 - 2.6% and in 2027 - 2.8%. At the same time, inflation will be at 7.3% at the end of this year, but after 2025 it will decrease to 4.5%, after which it can reach the target of 4%.
Meanwhile, Russia's real wage growth, taking into account price increases, will average 9.2% in 2024, 7% in 2025, 5.7% in 2026 and 4.1% in 2027.
The unemployment rate will remain near record lows and will remain at 2.6% over the next three years.
