"In the next few years national projects should not be folded, but transformed into state programs targeting specific results of importance to society," Putin told senior members of the upper house of Russia's parliament.
Four 'national projects' - aimed at producing affordable housing, a modern healthcare system, high-quality education and developing the agro-industrial sector - are currently being implemented in Russia. The projects are overseen by Putin's likely successor, Dmitry Medvedev.
Putin said the country should actively switch to a new model of social policy.
"To ensure that Russia moves forward swiftly and dynamically, we need to actively switch to a qualitatively new social policy - a policy of social development," he said.
Such a policy must be "broader than simply paying allowances and funding social institutions. It must be about forming a modern social environment centered on the individuals working to improve their health, education, housing, labor conditions, and to raise competitiveness and incomes. Ultimately, to develop the Russian nation instead of just preserving it," Putin said.
The president said social policy will be a key focus in the campaign leading up to the presidential election, scheduled for March.