Kudrin announced a dangerous for Russia size of the budget deficit
Release Date: 2011-07-08
Exceeding the budget deficit in 2012 in more than 3% can be critical for Russia, said Finance Minister Alexei Kudrin.
Head of the Russian Ministry of Finance attributed this to oil prices. "With oil prices at $ 93 per barrel, the deficit up to 3% of GDP - is undesirable, but possible", - he said, noting that the excess of this figure is critical, since there could be serious risks. Kudrin also said that in current situation tax increase looks more reasonable than increase in the budget deficit.
According to Kudrin, "if you go to the experts - the Institute of Gaydar, the IMF, they will tell you that the right thing in in this situation is to raise taxes, not raise the deficit, even at such a dependence on oil prices. This is the right dicision for the whole economy for the whole investment climate", - quotes RIA Novosti news agency.
Overcoming the crisis - in 2015
Ministry of Finance estimated that the parameters of the budget would return to its pre-crisis level in 2015. By this time, hopes Kudrin, the country's economy will come to a zero budget deficit. "2015 is our assessment of overcoming all the main results of the crisis" - the minister said. According to him, in terms of GDP, Russia will enter the pre-crisis levels by 2012, when it will exceed the figure in 2008 to 3.4% GDP in 2011 will amount to 99.9% from 2008 levels.
In a recent St. Petersburg Economic Forum Kudrin criticized the government's actions, saying that some of the steps of the Cabinet not only prevent competition in the country, but also reduce it. At the same time the Russian minister also said disapprovingly about the decision to reduce taxes.
Kudrin said that choices that Vladimir Putin made are "not aimed at creating competition and institutions" and the last few years, made decisions, "which distanced us from our strengths" According to him, for example, reducing payments to social funds, will lead to a deficit of the pension system, as well as the unwillingness of the government while reducing taxes to reduce costs.
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| Url: | http://www.bbc.co.uk/russian/business/2011/07/110707_kudrin_deficit_critical_level.shtml |