Page 36 - RPTRusFeb17

Almost one fifth (19%) of a Russian's average income stems from payments from the state budget , signifying the highest ever level of dependence on the government, Vedomosti reported on February 15. The dependence on the government looks even greater, given the fact that one quarter of the entire working population is employed by the government, not taking into account government-owned corporations. Between 2000 and 2008, payments from the federal and local budgets accounted for only 13.4% of Russian's average income, while in the Soviet era, the figure stood at about 15%. The increase of government payments comes against the backdrop of declining revenues of other types. Since 2000, people's incomes from entrepreneurial activities have nearly halved, the newspaper reported. Meanwhile, the actual size of social benefits paid by the government has been on the decline. In 2015 and 2016, the average pension size declined by 3.8% and 3.4%, respectively. Since 2013, the Russian population's actual income has shrunk 9.5%, according to the Russian Presidential Academy of National Economy and Public Administration, while pensions have declined by 7.2% and wages by 7.4%.
Russia’s attitude to small and medium-sized enterprise (SME) reached a nine-year high in February of 93%, up from 41% four years ago, Vedomosti reported , according to a survey by the state owned pollster, the Russian Public Opinion Research Centre (VTsIOM). The negative attitude to SMEs fell from 9% to 5% over the same period. Recent polls suggest that while Russians are not expect any dramatic changes (most believe the crisis will continue for at least another year), the population are increasingly confident they can work.
The share of those who want to start their own business was up to 27% in February against 19% in 2009: the highest share of those would-be entrepreneurs is concentrated in the young 18-24 year olds (52%) and decreases thereafter with age, VTsIOM found.
The general director of VTsIOM Valery Fedorov told Vedomosti that the main motivation was people understand the state is strapped for cash and there will be less social support for those out of work. After four years of
36 RUSSIA Country Report February 2017 www.intellinews.com