Ministry: Russian economy not to rise much with income inequality

DVORIKI, Vladimir Region, Aug 1 (PRIME) -- The Russian economy will not be able to grow at a high pace with the current level of income inequality, First Deputy Finance Minister Tatiana Nesterenko said at a forum July 30.

“The country cannot advance at a high pace if there is a serious income disparity and if there are poor people,” Nesterenko said. “We need to act and to create conditions to eradicate poverty as a phenomenon.”

She said only 5% of old people can be qualified as poor but of the entire income category, 35% of people are young families with two children.

Nesterenko warned that the current ratio between the budgetary income and spending has a potential of depleting the state reserves so that the state could even lose the funds to pay salaries.

She also said the Russian economy is in the eye of the storm. “Politicians must appraise and choose decisions which will allow us to quit this eye of the storm heavily but in a controlled way.”

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