The forecast of a decline of pensions of Russians in real terms will decrease

The government expect a reduction of pensions in real terms. It should be submitted to the Cabinet of Ministers of the macroeconomic forecast of the Ministry of economic development of the Russian Federation. The baseline scenario assumes a reduction in next year pensions in real terms by 0.7%. After two more years of payments will be reduced by 0.6% annually. The main reason for such concerns lies in the decision not to index the payment of 10 millions of Russian working pensioners. Economists also expect a negative impact of inflation.

photo: Gennady Cherkasov

In the Russian government introduced a macroeconomic forecast prepared by the economic development Ministry, according to which in the next three years will be a reduction of pensions in real terms. On Tuesday the newspaper “Vedomosti” with reference to the document. Two Federal officials confirmed the publication of this information. It is reported that the basic version of the macroeconomic forecast of Ministry of economic development involves the reduction of pensions in real terms by 0.7% next year. Next two years pensions will decrease by 0.6%.

On Monday the document was discussed by the Commission of the Cabinet of Ministers on budget estimates. The Chairman of Russian government Dmitry Medvedev instructed to clarify it in connection with changes in the economy.

It is expected that in 2018, the inflation rate will be higher than in the current year. While indexation of pension benefits takes into account the rate of inflation last year.

But the main reason for negative expectations was the refusal of indexation of payments to working pensioners. Those in the country, there are about 10 million.

The decision was taken by the Cabinet of Ministers in 2016. The government then promised to compensate for lost after a pensioner of employment. In the spring of this year, the head of the government Dmitry Medvedev is thinking about going back to indexing. Commission to study the opportunity was given to the relevant authorities.

In April, the Deputy head of the Ministry of economic development Oleg Fomichev told reporters on the sidelines of the Krasnoyarsk economic forum that the issue of indexation of payments to working pensioners is under consideration.

“It’s simple, we need to consider how many will require a budget, and the government to decide,” the official said.

But in the draft budget for 2018-2020 it is not, said the newspaper’s sources. This information was also confirmed by a representative of the Ministry of labor. At the same time, the sources reminded that the budget process is not completed.

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