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Friday, October 21, 2016

Putin aide called the intention of the Ministry of Finance to freeze the budget expenditures, “absolute madness”

Advisor to the President of Russia, economist Sergei Glazyev criticized the Finance Ministry’s proposal on freezing the nominal spending budget. Speaking at the forum “a Strong Russia in 2016”, he called it “absolutely insane measure” to the crisis.

In this case, Glazyev predicts a fall in costs of 10% and a decrease in demand, resulting in “stagflation trap” – that is, a combination of recession and rising prices.

“I wonder why in all the countries measures are taken to stimulate economic growth, and we have, on the contrary, has long held a policy of preventing economic growth,” said Glazyev.

Earlier media reported that Prime Minister Dmitry Medvedev supported the idea of the Ministry of Finance about the freezing of budget expenditures until 2019. The Kremlin later said that support optimization of costs, but consider it premature to talk about specific numbers.

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