Poverty in Russia: Analysis, forecast, and overcoming

Abstract

Subject. This article examines the phenomenon of poverty in the Russian economy. Objectives. The article aims to analyze the current poverty rate in Russia and substantiate recommendations for overcoming it. Methods. For the study, we used the methods of analysis and synthesis, analogy, generalization, a combination of the historical and the logical, and the economic and statistical ones. Results. The article reveals conceptual approaches to defining poverty and changes in the Russian methodology for determining the basic poverty line. Based on a comparative analysis of the global poverty rate in Russia and some countries of the world, the article presents a forecast of the poverty rate in the Russian economy for 2024–2026 and recommendations for overcoming poverty in the country. Conclusions and Relevance. The article concludes that not only a significant discrepancy between the absolute and relative poverty lines, but also an understatement of the official poverty line is characteristic of Russian practice. Progressive taxation and the establishment of a zero rate of personal income tax for citizens with incomes below the subsistence level can be one of the tools for reducing poverty. The results of the study can be used by the authorities and administration to develop State social policy.