ACRE: the reduction in budget will impact on the poorest Russians

MOSCOW, 10 Oct — RIA Novosti/Prime. The reduction of budget revenues of the Russian Federation in 2016-2018 the greatest impact on the poorest segments of the population, says the Director of research and forecasting Analytical credit rating Agency (ACRA) Natalia Porokhova.

Sberbank CIB on Monday released a new survey on consumer index Ivanova. Conventional Ivanov in the review is a typical representative of the Russian middle class.

According to analysts ‘ estimates, the share of Ivanovs who identificeret themselves as middle class has dropped to 51% in the third quarter of 2016 with 61% of the population in the third quarter of 2014. Thus, from the beginning of the economic downturn of 14 million people moved from the middle class with less income, as costs rose faster than wages. This puts pressure on the consumption of goods that do not belong to the category of Essentials. However, experts believe that the middle class will cease to decline further, due to the fact that the wage growth will be at the level of inflation.

“The main negative factor for incomes in 2016-2018 will be the reduction of budget revenues from payment of which (together with the retired) are subject to 35% of the population. That is the risk of loss of income will primarily be subject to less affluent segments of the population,” said Porokhova RIA Novosti, commenting on the review.