Ex-Finance Minister, Head of the Civil Initiatives Committee Alexei Kudrin believes that the financial situation in Russia will keep on deteriorating next year, reports Interfax.

- I think next year the incomes of the population will be cut, as the pension indexation will be reduced, Kudrin said.

According to him, this will be particularly noticeable for those not supported by families or having no money savings. The financier is confident the country needs a social reform focused on targeted support for those most in need.

He considers it being wrong in such conditions to raise taxes or transfer money received from investments to the regions. Russians’ real incomes in August 2015 decreased in comparison with last year’s August by 4.9%, according to Rosstat (Russia’s Federal Statistics Service).