ASSESSING THE MULTIPLYING EFFECT OF TARGET FINANCE EXPENSES OF HOUSEHOLDS

Abstract

Russian economy is in a deep crisis now caused by reduction in aggregate demand, which depends on many reasons, the main is plunging customer demand provoked by high inflation rate. Due to this academics and industrialists propose different steps aimed at increasing customer demand, for instance introduction of food ration cards for low-income people. The article for the first time provides a quantitative estimation of economic effect of introducing food ration cards for low-income people which was proposed by the Ministry of Industry and Trade RF. For this purpose a hypothetic state program of additional support for low-income groups for 2017-2030 was analyzed. P1-4 model showed that additional costs of the consolidated budget at the end of 2017 would cover initial expenses for ration cards by 48%. The article includes charts of GDP dynamics, the share of remuneration in output and the table of quantitative estimations.

Keywords

• food ration cards
• low-income people in russia
• additional profit of consolidated budget
• p1-4 model
• charts of gdp dynamics