The expert assessed the prospects of the new budgetary maneuver in Russia

© RIA Novosti / Vladimir Astapkovich in fotomancer of the Russian Federation on the coin. Archival photoThe expert assessed the prospects of the new budgetary maneuver in Russia© RIA Novosti / Vladimir Astapkovich the image Bank

The increase in spending on education and health care in Russia is possible due to the increase in oil prices, but the infusion of money into these areas should be accompanied by institutional transformation, considers the macro analyst of Raiffeisenbank Stanislav Murashov.

The newspaper Vedomosti said Monday, citing participants in meetings in government and Federal officials that the new presidential term of Vladimir Putin may begin with the fiscal space to increase spending on education, health and infrastructure.

According to the publication, are also discussed options of reducing the portion of government spending, tax increases, easing fiscal policy. Reduce defense spending compared to current budget not proposed but it is expected to reduce the cost of law enforcement and audit staff.

«It is expected to still increase spending because the spending plan of the Center for strategic research, they are more than the Finance Ministry. The second point – some part will be redistributed from other articles… Increasing taxes is unlikely to happen. We have oil prices high, allow the increased costs to make», says Murashov.

The idea is to increase spending on human capital – the right says Murashov, because it is an investment for the future. However, according to him, the increase in spending on education and health should be accompanied by institutional changes in these areas and not be confined to the growth in wages.

According to the chief economist of the Eurasian development Bank (EDB) Yaroslav Lisovolik, in recent years the quality of human capital and the problem of skills shortages is becoming increasingly important for Russian business.

«In this regard, the emphasis here is on the human factor, it is very correct and very important from the point of view of a more sustainable long-term economic growth. The emphasis on education, measures to support families, which were announced recently, is a very important signal about the new ideology of economic development and reform. And it meets the needs of the economy, the demands and needs of the business,» he said.

That offers CSR

Development strategy of the Russian Federation 2018-2024 years prepared by the Center for strategic research, comes from the need for a significant increase in investment in human capital and infrastructure development.

According to the strategy of CSR and the share of expenditures on education and health in GDP is proposed to increase by 0.8 and 0.7 percentage points, respectively, on infrastructure — 0.8 percentage points.

Among the measures for the development of the education system the authors of the strategy propose to expand the network of global research universities and support the universities; to create a market of additional professional education for the working population and the vocational education system to refocus on training for work in the field of high technologies.

Healthcare CSR suggests a shift from treatment to prevention of diseases, and to develop new medical technologies, including remote monitoring of the health of citizens.

In terms of infrastructure development we are talking primarily about the expansion of the transport network.