Duma removes Soviet-style social benefits

06 Aug, 2004

Russia's parliament took an axe to one of the last vestiges of the Soviet Union's cradle to grave welfare system on Thursday, voting to replace benefits such as free transport for millions with cash handouts.
The State Duma voted 309-118 in favour of a government-sponsored bill, restricting perks such as free medicines and train travel to only a few thousand Russians awarded with the official title of Hero.
Communists and left-wingers politicians denounced the bill, which has still to go to the Federation council upper house for approval before it can be signed into law by President Vladimir Putin.
"It is a default on (the government's) social obligations," a nationalist Sergei Glazyev said in parliament on Tuesday.
Free state housing, utilities, medical care and education were pillars of Soviet rule over a population paid minimal wages and which relied almost totally on the state to meet all their material needs.
Many benefits disappeared with the collapse of the Soviet Union. But even now nearly half the population of 145 million Russians, including pensioners, invalids and low-income families enjoy some sort of free perk.
They will now have to make do with monthly cash payments ranging from $15 and $100. A few benefits, including housing subsidies, will be kept for at least a year as a compromise.

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