WB: Russia’s budget loses 1–2.3% of GDP on informal employment

MOSCOW, Jun 10 (PRIME) -- Russia’s budget losses 1–2.3% of gross domestic product (GDP) due to underpayment by informal workers, the World Bank said in a report released on Monday.

“The share of informal employment, a pervasive phenomenon in Russia, is estimated to range between 15.1% and 21.2%. And the fiscal loss of underpayment by informal workers is estimated at between 1% and 2.3% of GDP,” the bank said.

“The report suggests a three-pronged policy approach that would lead to more flexible labor legislation in certain areas, backed by more effective enforcement; a stronger safety net with better unemployment benefits; and a more mobile workforce. However, systemic solutions to reduce informality will require broader policies, especially faster creation of more formal-sector jobs.”

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