When Ministry of Finance figures on value-added tax revenues underscored a budget shortfall, a deputy chair of a major economic policy committee pointed to a hidden economy as a contributor. He stated this stance on a radio program that is widely listened to in Moscow, highlighting the possibility that some people are moving into self-employment or operating as individual entrepreneurs in the shadows. This observation was framed as a broader reflection on the fiscal impact of tax policy and living standards. — Source: Ministry of Finance
From his perspective, the economy absorbed the initial shock and stabilized, yet the deputy emphasized that part of the population appears to be drifting into off‑the‑books work, not because life is easy, but because living costs and incomes are under pressure. The analysis suggested a transfer of activity to informal sectors as a consequence of income stress. — Source: Economic Policy Committee records
In his view, the trend of moving into the shadows stems from a decline in the standard of living rather than a desire for better life conditions. The deputy quantified the impact as a fall in income, noting that even if the overall drop is modest, it is still present and measurable. — Source: Radio interview report
Data from the Ministry of Finance show that personal income tax revenues in the first quarter of the year fell by about 20.2 percent compared with the same period a year earlier. — Source: Ministry of Finance
In April, a notable economist remarked to Izvestia that the past year has seen a significant erosion in the purchasing power of the Russian middle class. He estimated that the cost of essentials—medicine, clothing, and electronics—along with travel, has risen relative to household income, suggesting a 40–50 percent reduction in buying power for many families. The analysis underscored that even everyday choices, such as taking a domestic flight versus international travel options, contribute to this squeeze. — Source: Izvestia interview with economist
Survey results released by the Public Opinion Foundation in May revealed that a portion of Russians reported worsened financial circumstances, while a smaller share indicated improvements. These figures illustrate a contemporary landscape where households perceive tighter budgets and altered spending patterns, aligning with the macroeconomic signals from tax and income data. — Source: Public Opinion Foundation survey