Russian President Vladimir Putin has called on the government to increase the incomes of civil servants and pensioners as well as social benefits. They should be adjusted for inflation, the Kremlin chief said on Monday at a government meeting held by video. He put inflation at 17.5 percent. Overall, the economic situation has stabilized. The West’s “lightning war” against the Russian economy had failed, according to Putin.
He directed the government to pump fresh money into the economy to boost consumption. “Now it is extremely important to support domestic demand, to prevent its excessive contraction,” said Putin almost two months after the start of his war against Ukraine. The government can use budget funds directly for this purpose or use them as credit aid. The funds are available because in the first quarter of the year “a budget surplus at a record level” was achieved.
