Russian President Vladimir Putin said during a live broadcast on Russian federal television on Friday that citizens of Russia should not expect that all the problems that have arisen in the country, particularly in its economy and social spheres, will be resolved immediately.

"You, Russian citizens, are right to speak about low incomes, faults with the healthcare system, housing, utilities and other things as well," Putin said, stressing that after winning the election he feels "a need to address directly" those who supported him and gave him 76% of the vote.
"We need to make a real breakthrough," acknowledged the president. But it will not come immediately.

"Of course, I would like the matters that citizens raised to be addressed as soon as possible….but promising to solve all these things immediately, right away, to make the necessary changes simply overnight, would be an absolutely irresponsible thing to do," Putin said.

This would be a "nothing but a grand gesture, like showing off something designed only to have an immediate, short-term effect," whereas "what we really need is consistent, profound change, planned steps that will result in a stable positive outcome not only today but in the future as well," Putin said.

"We will be creating new jobs and increasing the effectiveness of our economy, increasing the real income of our citizens, reducing poverty, developing infrastructure and the social sphere – education and healthcare, addressing environmental and housing problems, and we will continue to renovate and revamp small cities and villages," the President promised.

"All of this should be based on a powerful technological breakthrough, which is yet to be made," he added.

Putin recalled that that his goals for a new six-year period were set out in a message to the Federal Assembly, adding that they are "realistic, right and valid."

According to Putin's plan, the state intends to drastically increase spending on infrastructure construction, education and medicine, spending an additional twenty trillion rubles ($349.4 billion) in the next six years, according to a Rosbank estimate.

To pay for the large-scale program, the government is discussing a tax increase: from 13% to 15% in income tax and from 18% to 22% and for VAT, as well abolishing tax incentives for food and medicine.

According to Putin's plan, the number of people living below the poverty line (13.1% of the population, or 19.2 million people) should decline by half. At the same time, Russia should join the ranks of the world’s top five economies.

Taking into account the current size of the Russian economy ($1.56 trillion), it would need to grow 1.66 times, or 7-8% annually, in order to catch up with the UK, which is currently in fifth place ($2.5 trillion).

The Russian Ministry of Economic Development said on Thursday that Russian GDP growth slowed from 1.9% to 1.5% in February.

  Putin, Economy of Russia

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