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Monday, October 24, 2016

Bloomberg: Putin ordered to withdraw from the shadow economy of 30 million Russians

During a closed meeting of the Council for strategic development and priority projects of the President of Russia Vladimir Putin has charged to develop measures that will bring the many millions of Russians from the shadow economy. According to experts, and employs as many as 30 million citizens of the country.

photo: Natalia Gubernatorova

On behalf of Putin Bloomberg reports, citing two members of the closed meeting. As the newspaper notes, in the informal economy today are mostly occupied by construction workers, dentists, mechanics, veterinarians, and many others. Also, this sector is also called the “garage” – involved people are actually excluded from the tax system.

According to the experts at “garage economy” now accounts for a quarter of the total Russian GDP. The Agency noted that if millions of Russians will come out of the shadows and start paying taxes – this will be a great solution to the problem of the budget deficit.

According to statistics, the shadow economy today involves 30 million Russians — that is 40% of the total working population of the country.

Earlier it was reported that next year may dry up the Reserve Fund and national welfare Fund, by means of which the government plug holes in the budget.

Against this background, it became known that the authorities will continue the practice of weaning funded pensions of Russians until 2019 inclusive, as well as that, the Cabinet decided to freeze the increase in government spending.

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