Vladimir Putin delivered his annual address to the Federal Assembly.
This time, it is a record early, at the very beginning of the year.
What's good?
Real assistance will be given to families with children, mainly to the poorest families:
a) Benefits for low-income families with children have been extended from 3 to 7 years, starting from January 1, 2020.
b) All students up to grade 4 will be given free hot meals in school from September 1, 2020.
C) Matkapital will be already on the first child (!) - on the second increase of 150 thousand rubles.
This, unfortunately, is almost everything.
But what about income and GDP growth?
a) For income growth, GDP growth is needed, which is fortunately promised on 2021. For GDP growth, we need an investment growth of +5% to the current level. Thus, all in all, we need first an investment growth, then GDP growth, then income growth.
This will take a very long time and in my opinion, is unlikely to work. The economy is not developing, as it is pinned down by low incomes of citizens and high taxes. No demand, no growth.
b) Positively, it is promised that the government's reserves will amount to 7% of GDP by mid-2020, and that which will be higher will be sent to the economy.
Politics.
A change in the system of power and the Constitution is promised. The role of the parliament will be strengthened, while the President's role will be weakened. The parliament will be the one to appoint the Prime Minister and Ministers, and the President will not be able to approve the decision of the parliament. The President though, can send Ministers and the Prime Minister to resign. Putin said that he does not consider it necessary to increase the term of office of the President.
Conclusions: It seems that Putin is not going to keep his presidency after 2024. The role of the parliament is growing. The significance of the State Duma elections in 2021 is increasing dramatically. A large transit of power begins.
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