Prime Minister Mikhail Fradkov, while summing up the discussion, called the forecast prepared by the Economic Development and Trade Ministry "the most important document for Cabinet work."
"This is a serious effort to plan, forecast, and, actually, to organize the effective work of the government on the whole," he said.
The development plan envisions the following figures: economic growth will be 6.5% in 2007, and will total 6.1%, 6% and 6.2% in 2008-2010 respectively. Industrial production growth in 2007-2010 is predicted at 5.2%, 5.1%, 4.8% and 5.2% respectively. Inflation for 2007-10 is expected to be 7-8%, 6-7%, 5.5-6.5% and 5-6% correspondingly.
Inflation in 2006 stood at 9% in Russia.
Investment activity is expected to rise in the next few years in oil and gas production, the power industry, transportation, residential construction and in the agrarian sector.
The mid-term economic policy prioritizes economic diversification, improvement in the investment climate, ensuring competitiveness and the establishment of clearly working market institutions.
Economic Development and Trade Minister German Gref said the number of Russians earning less than the subsistence wage, which currently stands at 5,120 rubles ($200) per capita in Moscow, will decline to 10.7% of the population by 2010 from the present 16%.
Gref said the ministry forecasts a delay in ruble appreciation by 2010 and a slowdown in growth rates of Russian gold and foreign currency reserves.
The economics minister also said pensions in Russia will grow by 39.7% in 2008-2010, and by late 2009 the social pension will reach the subsistence wage level. However, he said, the deficit of Russia's Pension Fund will be 0.6% of the country's gross domestic product.
