Officials were concerned the reduced indexation of pensions in 2017

The government is discussing the possibility to abandon the indexation of pensions to the projected inflation of 6.5% in 2017, according to “Vedomosti” with reference to the three Federal officials. According to estimates of experts, participating in the discussion of the Ministry of Finance, the indexation of pensions by 6.5% in 2017 will cost the budget of 410 billion rubles.

According to “Vedomosti”, the proposal is considered in the framework of the preparation of the Federal budget for 2017-2019. As noted by one of the Federal officials, the budget expenditure in nominal terms at least should not increase compared to 2016 (about 15.8 to 15.9 trillion), and it is better to reduce them.

One of the proposals could be a reduction in social spending, which for the last seven years has grown at a faster pace, said the newspaper. According to another official, representing the financial-economic bloc of the government, to reduce social spending nowhere, “If only to abolish education and health. The indexation of pensions to inflation is another “reserve” for the consolidation of the budget, the newspaper notes.

Two officials said that while no decisions on three-year budget is not accepted.

The government has already suspended the 2016 legislation providing for the indexation of pensions to inflation. As a result, in February 2016, pensions were increased by 12.9% and only 4%.

In early June of 2016, Prime Minister Dmitry Medvedev said lower indexation of pensions “temporary measure”.

“In General, assume of the opportunity to consider how to index pensions in the next year on inflation, that is, in other words, to return to that order which we have acted until now. But, of course, all these decisions should be finally determined by us, calculated taking into account the actual prevailing economic situation”, — said Medvedev at the meeting devoted to questions of rendering of social support of separate categories of citizens.

In late may, Medvedev said that a second indexation of pensions in Russia in 2016 has not been taken yet. “Just no money. Find the money, will do the indexing. You stay here, you all the best, good mood and health,” — said Medvedev appealed to him the pensioner.