Social Contract Helps Russian Families Become Self-Sufficient

Russian Prime Minister, Mikhail Mishustin, signed a decree according to which, from 2021, families in need will be able to use the funds of the social contract for the development of personal subsidiary plots, the press service of the Russian Cabinet of Ministers reports. 

A social contract is a special contract that is concluded between the social security authorities and a poor citizen. Thanks to the social contract, Russians can undergo retraining, improve their professional qualifications, start individual entrepreneurship, or get a job.

It is specified that federal co-financing of this area began in 2020. Since then, more than 20 regions were able to receive state support. In 2021-2022 it is planned to expand the effect of social contracts throughout the country. To date, more than 26 billion rubles have already been allocated from the federal budget for these purposes.

It is noted that the funds allocated as part of the social contract should be used only for activities related to the fulfilment of the relevant obligations. In confirmation of the intended use of funds, all cash receipts, sales contracts, etc. must be provided.

If a citizen does not fulfil the conditions of the social contract, cash payments will stop, since the contract will stop its effect. Moreover, if a citizen stopped individual entrepreneurial activity on his own initiative during the period of the social contract (from 3 months to 1 year), he will have to return the money received as state social assistance, the press service of the Russian State Duma reports.

Ru-Main, 05.01.2021 



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