Increase of expenditures on Russia’s medical care, infrastructure and education by 3% of GDP will trigger economic growth of more than 3%, head of Center for Strategic Development Aleksei Kudrin said Wednesday.
“Over longer term, until 2020, we have to increase expenditures in these sectors (infrastructure, education, medical care) totally by at least 1% of GDP. If we want to reach economic growth of more than 3%, and preferably of 4%, we have to boost expenditures in these sectors by 3% of GDP, according to our estimates,” Kudrin said at the first meeting of the Council on Strategic Development and Priority Projects, adding though that expenditures in those sectors have to be reduced within the budget policy in nominal terms.
Russian President Vladimir Putin announced the establishment of the Council at the St. Petersburg International Economic Forum on June 17. The Council will deal with key projects aimed at structural changes in the economy and social sphere and at raising economic growth rates, President said.
The Council Presidium chaired by the Prime Minister will meet monthly and the Council headed by the President will hold meetings once per quarter.