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Sunday, December 4, 2016

The Finance Ministry warns: the reserve Fund will be exhausted in the next year


The reserve Fund can be spent by 2017. Such unfavourable forecast was made by Deputy Finance Minister Sergei Storchak. Earlier, the head of Department Anton Siluanov said that it will happen in 2016, if we abandon fiscal optimization. If there is enough money in the “pod” to survive the crisis, “MK” asked the experts.


photo: Gennady Cherkasov

According to the Finance Ministry, in June, the Reserve Fund declined by 3.7%, to 2,456 trillion rubles, national welfare Fund by 3%, to 4,675 trillion rubles. A month earlier, the volume of these funds amounted to 2,551 trillion and 4,823 trillion rubles, respectively.

EXPERTS OF “MK”

Mikhail BELYAEV, chief economist of the Institute of stock market and management:

“With the current budget deficit, the Reserve Fund could be empty in 2017. Now efforts should be made to fill the budget. While not resorting to external sources. You should develop the domestic economy by stimulating investment process. Only then we will grow the budget, grow the GDP, and the population will live better”.

Pavel SIGAL, first Vice-President of OPORA RUSSIA:

“The exhaustion of the Reserve Fund, the natural process at current oil prices. It was formed in “fat” years for the country to experience falling prices for black gold. Now when this happened, the funds spent on infrastructure projects and the social security Fund, i.e. to Finance the budget deficit. But nothing wrong with that. Since many countries live without a Reserve Fund. For example, in Western countries, such funds do not exist in principle. The gateway to the market of external borrowing – is also a normal process. For example, the external debt reaches the hundreds of billions of dollars, however, us bonds are considered the most reliable in the world. But the exhaustion of the Reserve Fund is just more proof that “fat” years passed and we need to get used to the fact that megaprojects go of the past and the public sector will not be so intense as to be funded until 2014. Will survive only the most essential Federal programs.”

Nikita KULIKOV, Executive Director HEADS Consulting:

“Information about emptying the Reserve Fund by 2017, obtained at first hand from the Deputy Minister of Finance of Russia Sergey Storchak, not to trust her, no reason. The ability to quick depletion of the Reserve Fund is a big problem for our country, and money is lacking, and to continue the funding of several important projects as the construction of the Kerch bridge must. Therefore, the government is trying to take advantage of all available resources. Some may argue that the Reserve Fund is turned into a kind of “piggy Bank” for the budget, financing of projects, but for emergency situations it was established in 2008 and is constantly replenished by windfall revenues from oil sales.

Russia in the last few years trying to get off the “oil needle”, if this happens, the Fund will have nothing. Have not invented a new marketable, competitive product. To look for a windfall — not an easy task.

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