Accounts Chamber: the Well-Being of Russians Declined to the Level of the Early 2010s
OREANDA-NEWS. Based on the results of the analysis of the execution of the 2020 budget, the Accounts Chamber pointed to a number of negative points - the Ministry of Economic Development does not take into account shock scenarios for the economy, and the welfare of Russians has not recovered.
"By the end of 2020, the well-being of the population is approximately at the level of 2010-2011," the Accounting Chamber said in the conclusion of the analysis of the execution of the federal budget.
"Due to the weak dynamics of income after the crisis of 2014-2016, incomes did not have time to return to pre-crisis values, and 2020 only exacerbated the situation," the ministry said in a statement.
The poverty level in Russia at the end of 2020 decreased from 12.3% to 12.1%. This "is mainly connected not with the improvement of the living standards of the population, but with large-scale social payments," the auditors emphasize.
At the same time, this department reminds that its recommendations are not being implemented - the Accounts Chamber "has repeatedly focused attention" that "in recent years, the medium-term forecast of the country's socio-economic development (EDS) usually does not contain a scenario of a sharp deterioration in the external economic situation, and the conservative version does not take into account risks of a possible deterioration in external economic conditions, while the Russian economy has repeatedly faced economic shocks that cannot be predicted (sanctions in 2014, pandemic in 2020). "
The Accounts Chamber also recommends "to envisage a scenario of shock economic development within the medium-term forecast. In addition, the Bank of Russia needs to pay attention to improving approaches to macroeconomic forecasting of various shock scenarios."