President Putin has proposed increasing the cost of living by 8.6% in 2022. “The draft federal budget for next year now includes an indexation of the living wage by 2.5%,” the head of state said. “Of course, this is not enough, because such parameters are significantly behind the current inflation rate, which has accelerated in recent months.” He proposed to increase the figure by one thousand rubles, adding that many social benefits and additional payments are based on the size of the living wage. In addition, the president wants to index pensions above inflation. Initiatives proposed by the head of state were discussed by MK with experts.
As a result of the indexations proposed by the President, the subsistence minimum in 2022 may amount to 12,654 rubles, and the minimum wage – 13,890 rubles. The head of state instructed the presidential administration to prepare amendments. State Duma deputies will consider them during the second reading of the bill on the federal budget, scheduled for next week.
Vladimir Putin said that in 2021 it would be wrong to deviate from the rule for indexing pensions above inflation. According to him, proposals on specific parameters are being worked out in the government, the presidential administration, and “the deputies are thinking about it.” “We will return to them in the near future, let’s see how the macroeconomic indicators will develop. We also talked about this yesterday, I ask you to keep this in mind and submit proposals in the near future, ”he added.
In their assessments, the experts drew attention to the different implications of the proposed initiatives.
Andrey LOBODA, top manager in the field of financial communications:
“The minimum wage in 2022 will grow by 8.6%, to 13,890 rubles. The rise to date is indeed higher than the official inflation rate. The Ministry of Finance will calmly provide pleasant changes in the life of all categories of Russians, because the country’s budget is currently in record surplus.
It is simply impossible to ignore inflationary processes against the background of the government’s commitments to strengthen the social vector of the country’s development. They seriously annoy people and are visible to everyone. In addition, if not stingy monetary authorities, then the President and the Russian Constitution will reliably protect citizens from the depreciation of the ruble. At the moment, this initiative will support the least protected segments of the population, and Russians with low incomes, we have about 50% of the total population of the country. The extra 1000-1200 rubles a month will definitely not hurt them, and if pensions are also indexed above inflation, then at least the purchasing power of people will not fall into the abyss and, possibly, will stabilize.
The most important focus of the authorities, of course, should concentrate on fighting inflation and restoring the strength of the ruble. The monetary authorities are able to accomplish such a task, because the market situation for Russia is very favorable. It turned out to be much easier to fill the budget with cheaper rubles to the limit than to maintain the quality of life of people. There is still serious work to be done on the mistakes against the background of building a real welfare state. “
Vladimir KUZNETSOV, Vice President of the Association of Lawyers for Registration, Liquidation, Bankruptcy and Legal Representation:
“Finally, the requirement of the Constitution that the amount of remuneration cannot be less than the subsistence minimum is being observed. A large number of social payments, benefits for temporary disability are “tied” to the minimum wage. It is possible that such an increase was also made in order to maintain the standard of living of the population, which may suffer from disease and disability in a pandemic.
However, there is an opinion among the population that the introduction of any positive economic changes, including an increase in the minimum wage, threatens with unpredictable political events. There are also fears that the growth of inflation will be much higher than the projected one and, as a result, the size of the minimum wage, which now looks attractive, in the future may again turn into the very minimum, which is very difficult to live on. Some see such measures as populist. But this is more related to the mistrust of the broad masses, developed over the years. It should be remembered that the Russian Federation is a social state. It is necessary to give an opportunity to develop this central direction of state policy, to form the key priorities of the federal budget in such a way that the population is always protected, does not suffer from sudden changes in the economy. “
Nikolay PERESLAVSKY, employee of the Department of Economic and Financial Research, CMS Institute:
“This decision was made due to the fact that the indexation announced by the Ministry of Finance was almost two times lower than the current inflation. Considering the fact that the incomes of Russians are not growing, tariffs for housing and communal services will increase by about the level of inflation, and product inflation is now approaching 20%, such an increase is quite logical. Moreover, this year the budget will close with a trillion dollar surplus, so the state has funds to seriously raise the minimum wage and pensions.
Moreover, there are opportunities for greater growth, as well as for freezing tariffs for housing and communal services both for the poor and pensioners, and for other citizens of the Russian Federation. Now for the state, the low ruble exchange rate is the best way to replenish the budget through tax payments from exporters, from whose funds many additional social payments and indexation of constant payments are provided. So it will not affect the pockets of the rest of the Russians directly. “
Petr GUSYATNIKOV, Senior Managing Partner at PG Partners Law Firm:
“Firstly, we do not know the final inflation figure at the end of the year. As you know, now it is overclocked again, and earlier these inflation forecasts did not come true. Secondly, we do not have such a law that would oblige to raise the minimum wage and the subsistence level strictly by the percentage of inflation in the previous year. For example, in 2018, the minimum wage was immediately increased by 43%. If the cost of living and the minimum wage are indeed increased above inflation, this is very good, since the country, like the whole world, is going through hard times now due to the coronavirus pandemic and the population will not be in the way of an extra penny. In addition, the higher the minimum wage, the more stimulated consumer demand and the higher the positive effect for the economy. “
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