Ex-Finance Minister Alexei Kudrin said that the country’s leadership does not understand the new economic reality and its budget policy leads to empty spending of funds that otherwise could go to Finance investment projects.
photo: Mikhail Kovalev
According to the former Minister, which leads TASS, his colleagues have no understanding of the fact that “we have moved into another reality”.
As an example of such a lack of understanding Kudrin gave a forecast of stagnation until 2020, when the rate of economic growth will not exceed 1% per year.
Also he reminded about the Federal budget deficit amounting to 2.5 trillion roubles, of this sum, said the expert, equivalent to all the annual spending on defense and education in the country.
Kudrin noted that the reserves are starting to run out now and the government resorts to domestic borrowing, which ultimately will lead to higher public debt. This, in turn, will mean 700 billion per year spent on debt servicing, not investment in the economy.