Kudrin prophesies for Russia a decline in budget revenues - a way out in the “creative industries”
In 2020-2021, Russia expects a significant decrease in budget revenues. The head of the Center for Strategic Research, ex-Minister of Finance Alexei Kudrin stated this today, speaking at the Gaidar Forum.
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“Budget revenues will decline even with fairly high growth rates. Nowadays, a large share of income comes from oil and gas revenues. As the share of this sector in the economy declines (and it generates more taxes than ordinary enterprises due to rent), budget revenues will decline,” Kudrin said.
At the same time, budget expenses should be reduced from 37% to 30-32%.
“We need to look for new sources of income. They may be partly related to changes in the tax system,” Kudrin said.
He also stated that Russia should be engaged in the creation of creative industries - now in large cities of the Russian Federation the creative industry (this from design to programming) makes up only 0,5-1% of GRP, while, for example, in London it is 6-8%
“This area is transforming the industry, creating new design in everything. Steve Jobs once said that only 30% of engineers create the iPhone, and two-thirds are engaged in the dialogue between man and machine, design. These are representatives of humanitarian professions. We need a creative industry that will transform our industry and services,” Kudrin said.
Earlier, Kudrin complained about the low growth rates of the Russian economy and the technological lag behind the West.
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