President-elect Vladimir Putin said on Wednesday that he estimated implementation of his pre-election social promises at 1.5 percent of Russia's gross domestic product.
Core social initiatives stated by the prime minister in his pre-election program include support of families with many children, an increase in stipends for students to living-wage level and higher wages for professors in universities.
"I think we will have to spend up to 1.5 percent of GDP for such work. We should also examine expenses planned for this and coming years and optimize them," Putin told a government meeting.
Analysts of Russia's top bank Sberbank estimated all Putin's pre-election promises in mid-February at five trillion rubles ($168.5 billion) for six years, including 3.5 trillion rubles for higher wages for teachers and doctors.
BNP Paribas analyst Yulia Tseplyayeva told Vedomosti business daily last month that non-social initiatives might raise country's budget deficit to three percent of GDP. Financial support of the regions from the federal budget sources is likely to stay at three percent of GDP annually, potentially leading to higher state debt or tax increases.
