Peskov found the demographic situation in the country to be tough

2021-04-03

Devastating effects of the Government policies

A spokesman for the President of Russia Dmitry Peskov said that the overall demographic situation in Russia is in poor condition. According to him, all measures are being taken to balance the impact of hard demographic pitfalls.

At the end of 2020, the Ministry of Labor announced that the birth rate continued to decline in Russia. In 2020, the number of deaths also increased in Russia, so that the population loss was 688 thousand people.

The birth rate failing has become a consequence of raising the retirement age. The increase in the retirement age, firstly, has brought about a fall in the real incomes of people. Secondly, it has taken the opportunity to look after their grandchildren from many pensioners, since most of their children don’t have kindergarten and nursery coverage. Prices for housing, public service utilities keep constantly going up, the introduсing of new taxes and charges impoverish working people. And this also leads to lower fertility.

The process of streamlining the healthcare and education systems also had a significant impact. The downsizing of hospitals and midwifery clinics has made it difficult for people to be given access to proper medical treatment. Oftentimes one has to travel dozens of miles away to see a doctor.

So that to improve the demographic situation in the country, it is necessary to take measures opposite to the actions the Russian authorities usually take. It is necessary to increase the number of hospitals, purchase up-to-date medical equipment for small hospitals in villages and towns. That would require building kindergartens, schools, art centers. Finally, the retirement age needs to be returned to its previous level. Then it will be possible to normalize the demographic situation and create a basis for its further sustainable growth.

But all these measures will require an increase in budget expenditures and a related increase in revenues. One of the most realistic ways to raise budget income is through progressive income tax and a luxury tax introduction. However, the authorities are trying their best to avoid these measures.