Bloomberg: In order to fulfill election promises, Putin can raise taxes after the election

In order to fulfill election promises - to increase health and education expenses, Russian President Vladimir Putin can raise taxes and cancel part of the benefits after the elections, writes Bloomberg, referring to three sources close to the development of government plans.

According to the publication, Putin will present a plan for increasing expenses for human capital in February during the message to the Federal Assembly. He will talk about an almost 30 percent increase in healthcare, education and infrastructure financing. In six years, they will be about two trillion rubles higher than now, which will be the largest increase since 2012.

Putin approved the budget maneuver back in November, says Bloomberg. Many measures were formulated in the reform program compiled by the former Minister of Finance Alexei Kudrin, whom Putin appointed responsible for the preparation of the Socio-Economic Development Strategy until 2024. In a letter to Putin, Kudrin wrote that Russia spends much less developed countries on hospitals, schools and roads, and if these expenses cannot be increased, Russia is waiting for stagnation. Putin wrote in a letter that Bloomberg got acquainted with, the resolution “I agree”.

Putin will announce from where to get the money to make these plans only after the election.

List of measures that are discussing the Russian authorities:

• Increasing income tax from 13 to 15% or the introduction of a differentiated rate.
• Increase in retirement age and tightening the conditions for the early retirement.
• The abolition of value added tax benefits for socially significant goods, including some products and medicines.
• Introduction of co -financing services in education and medicine.

“I do not understand where the state will get more money from the tax system and reduce benefits,” said Yaroslav Kuzminov, the rector of the Higher School of Economics, participating in the discussion of the economic program as an adviser in a conversation with Bloomberg.

According to Kuzminov, public opinion polls show that citizens are ready to support such measures if they know that this will lead to a qualitative improvement of the services provided.

Confidently controlling the media and political opposition, the Kremlin may not be afraid that the discussion of unpopular measures will negatively affect the level of Putin’s support, Bloomberg writes. Polls show that he will benefit by a wide margin, and now the main task is to ensure a high turnout to the polls.