Russia is rapidly turning into “social security” country

Share of social expenses in the total amount of Russian state expenses through the crisis years increased more than time and half. It is dramatically different from what is happening in Europe. This is the conclusion FBK analysts came to after making comparative assessment of social expenses growth in Russia and EU countries. In Russia in pre-crisis 2007 social expenses made 25,1% of consolidated budget, in 2009 – already 29,4%, while in 2011 this showing shall make 39,7%. For 27 EU countries this showing before crisis was 38,9%, in 2009 – 39,5%. In 2011 it should remain about the same.
As noted by Igor Nikolaev, Director of Strategic Analysis Department, FBK, the current Russian showing, if compared with individual EU countries is not record-breaking. The highest belong to such highly-developed countries as Germany – 45,6%, Denmark – 43,5%, Luxemburg – 42,6%, Finland – 42, 5% (according to data of 2009). However the Russian showing is noticeably higher than the showings of the countries that are of about the same economic development as Russia: Slovakia – 29,5%, Czech Republic - 30,5%, Estonia - 34,7% etc. “Highly developed countries may afford higher share of social expenses. Less developed countries, due to minor efficiency of their economies are relatively limited in such expenses”, Igor Nikolaev commented.