Alexey Kudrin: Russia will face debt crisis

Alexey Kudrin: Russia will face debt crisis

Budget rule in Russia needs to be softened in Russia in order to increase the expenses for stimulating economic growth and investments in human capital. Otherwise state debt will increase causing a snowballing effect.
Report informs referring to, ex-finance minister and the current Head of Center for Strategic Research Alexey Kudrin wrote in his article published by “Voprosı ekonomiki” (Questions of Economy) magazine.
Kudrin does not agree with budget draft for 2018-2020 that is discussed in the parliament now. He believes that budget rule that Ministry of Finance intends to adhere to in the next three years is excessively severe and limits the expenses of federal budget. He suggested to rise the oil price basis in the budget from 40$ to 45$ per barrel. He also proposed to increase maximum outgoings for revenue accruing from privatization till 0,5% of GDP.
Analysts unanimously predicts long stalemate of Russian economy. In the next three and six years the economic growth is forecasted to be 6% and 1,5%.