Under the “bitter pill”, the Minister of Finance and Minister of economic development understand the decline in the share of public expenditure in the economy, limiting borrowing.
MOSCOW, 13 Oct. The Russian economy in the current difficult conditions have to accept the “bitter pill” to return to growth, said Minister of economic development Alexei Ulyukayev and Finance Minister Anton Siluanov.
“All recipes known, we all all know. Just as the patient who does not want to drink bitter medicine, he lays it aside,” — said Ulyukayev, speaking about the Russian economy during the investment forum VTB Capital “Russia calling!”.
Siluanov, in turn, noted: “the Budget in the current circumstances should change, and we have this bitter pill to try.”
“In the first place (this must be done — ed.) through the decrease in the share of public expenditure in the economy,” he said, adding that the main lines must be the reduction of costs, through the reduction of the budget deficit, the recovery of large resources in the economy.
“In conditions when we should be talking about investment growth, of course, our goal should be to budgetary restraint, restriction of loans, limiting interest rates in the economy, which is extremely important today because it is through reduced costs, ongoing costs, we can talk about reducing the rates, reducing inflation, and this ultimately macroeconomic conditions for growth”, — concluded Siluanov.
According to the head of the Ministry of Finance to ensure truly sustainable growth, the country needs to stimulate private investment.