💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Putin to pledge higher health, education spending in Thursday speech: sources

Published 02/28/2018, 12:03 PM
© Reuters. Russian President Putin delivers a speech during a gala show, marking the Defender of the Fatherland Day, at the Kremlin in Moscow

By Darya Korsunskaya and Polina Nikolskaya

MOSCOW (Reuters) - Russian President Vladimir Putin is expected to promise higher welfare and infrastructure spending when he addresses parliament on Thursday, but to be unspecific about how the increase should be financed, four sources familiar with his proposals said.

Polls show Putin, who has dominated Russian politics as president or prime minister for the last 18 years, is on track to be comfortably re-elected on March 18.

On Thursday, Putin will deliver his annual address to parliament and other members of the Russian political elite, delayed since late last year.

Sources familiar with his proposals told Reuters that the speech had been reworked many times because there was no agreement between different parts of the government about measures to spur economic development and how to finance them.

However, the sources said that officials had managed to agree on an increase on health, education and infrastructure spending in principle, but that there was still a lot of work to do when it came to drafting specific changes.

"It seems like there is a kind of political agreement that the president cannot mention the sources (of financing for the spending increase)," one senior government official said.

"He will speak of the (policy) direction and the government should then propose how it should all work."

A debate among Russian officials about higher welfare and infrastructure spending -- something the World Bank believes would help Moscow spur growth -- has intensified in recent months among government officials.

There is a consensus among Russia's ruling elite that the pension age will need to be increased and other socially-sensitive steps taken, but Putin is not expected to mention those in his speech, the sources said.

The main decisions on how to finance higher social and infrastructure spending are expected only to be firmed up after Putin formally begins what would be his fourth presidential term in May, according to the sources.

© Reuters. Russian President Putin delivers a speech during a gala show, marking the Defender of the Fatherland Day, at the Kremlin in Moscow

The Kremlin did not reply to a Reuters request for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.