The Finance Ministry warned about the risk of monetary financing of budget expenditures


Moscow. November 3. The Ministry of Finance warns of the danger of transition to monetary financing of budget expenditures, if they are not aligned with the new budget.

“If you don’t take in the near future a new fiscal rule, which will determine the maximum amount of costs based on our capabilities, and will not be guided by them, we can quickly use our reserves and go to the resource Bank that can’t be done as it will lead to inflation with a subsequent round of expenditure indexation on inflation,” said Finance Minister Anton Siluanov at a meeting of the state Duma Committee on budget and taxes on Tuesday.

Without such work, the Minister said, the Reserve Fund will be spent quickly and in 2017 will be spent already the national welfare Fund. Moreover, it is likely under these conditions of transition “to equity financing,” he said.