Soaring oil prices free up some cash for 2005 budget
The Russian government is increasing the minimum wage by 20 per cent to 720 roubles ($32 Cdn) starting in 2005.
The government also announced it is going to increase old-age pensions by 250 roubles ($11 Cdn) per month next year, according to ITAR-TASS.
Russia’s finance minister, Alexei Kudrin, said the government can afford the increase because of soaring oil prices. The government had counted on oil hanging around the $28 US per barrel price range, but it has recently soared into the mid-$40 range.
With the increase in pensions, the government is hoping to keep 2005 average pensions above the subsistence level by five or six per cent.
The government also announced it is going to increase old-age pensions by 250 roubles ($11 Cdn) per month next year, according to ITAR-TASS.
Russia’s finance minister, Alexei Kudrin, said the government can afford the increase because of soaring oil prices. The government had counted on oil hanging around the $28 US per barrel price range, but it has recently soared into the mid-$40 range.
With the increase in pensions, the government is hoping to keep 2005 average pensions above the subsistence level by five or six per cent.
