«The Russian economy: how shall we live with the new budget? ». The General Director of FBK Economic and Law School Sergey Pyatenko is at Finam.ru online-conference

October 4, 2012 Sergey Pyatenko, the general director of FBK Economic and Law School spoke at the online-conference of the portal Finam.ru «The Russian economy: how shall we live with the new budget?».

Pyatenko has noted that the principles of budgeting concern everyone. «In Russia the scheme of relations of government and taxpayers can be described in figures something like this. Approximately 80 percent of the taxes collected in Russia are paid by legal entities and only 20 percent - by individual persons. In developed countries it is quite the contrary: approximately 70-80 percent of taxes are paid by citizens and only 20-30 percent – by companies. That`s why citizens` attitude towards the tax situation is more conscious. It means that any appeal to increasing the government expenditures is immediately considered towards oneself: how many additional taxes will be collected from me», - the expert explained. According to his words the taxes amount approximately 80 percent of the government revenues everywhere including Russia. «So any increasing of government expenditures is the increase of taxation burden. The government almost hasn`t the other sources of revenue. So, citizen, remember: when you hear that the government supports, invests in something, helps somebody, etc., it will take the money from you by means of taxes», - the economist warned.

When answering the question what rate of inflation would be acceptable for Russia, Pyatenko noted that for country of our level of economic development the inflation rate of 7 to 10 percent per the year is absolutely normal: «In this case a good economic growth is more often observed. That`s why if the price increase is in these limits, there will not be nothing bad».