Thanks to the growth of income from oil and gas, the volume of the Russian National Welfare Fund (FNB) reached the record. But the President of the country, Vladimir Putin, wants to save extra money, putting them on a black day, writes Bloomberg.
I approved the costs of $ 35 billion to implement infrastructure projects this year, Putin instructed the government to limit further expenses, spoke from the publication. “Leather attitude to income from the sale of oil is a huge plus, which will increase the attractiveness of Russia in the eyes of foreign investors,” said the Deputy Chief Economist at the International Institute of Finance in Washington Ealina Rybakov.
Putin wishes to stick to his long-standing tactics aimed at limiting the growth of the public debt and the rapid restoration of reserves after increasing costs against the background of the coronavirus pandemic, Bloomberg celebrates. The authorities were offered only a moderate increase in social security costs, although, according to Fitch Ratings, this year the government is likely to receive about 40 billion dollars of additional income from the oil and gas industry.
A docking strategy will be implemented – a balanced budget, in which preference is not given to investments, and savings and a moderate borrowing plan, SOVA Capital Economist Artem Zigrin is confident. The government predicts that in 2024 the volume of the FNB exceeds 300 billion dollars compared to this 190.5 billion. The Ministry of Finance of Russia declares that additional money is necessary “to reduce long-term budget and macroeconomic risks that may arise as a result of an energy transition.”
The inviolable part of the well-being foundation increases in case of economic and political problems, considers the former high-ranking official Central Bank Oleg Voygin.
Earlier, Putin called the main enemy of the country’s low income of millions of citizens. Over the next three years, 41.5 trillion rubles are supposed to be sent for social support of Russians.