Kudrin: the NWF and the Reserve Fund is unlikely to be exhausted until 2018

Kudrin: the NWF and the Reserve Fund is unlikely to be exhausted until 2018

Even if the funds of the NWF and the Reserve Fund will be actively used part of the resources will remain, according to Alexei Kudrin. He noted that the government intends to spend in the reserve with caution.

DAVOS, 22 Jan. The government will take a cautious approach to the expenditure of funds of the NWF and Reserve Fund and is unlikely to spend it by 2018, said the ex-Minister of Finance Alexey Kudrin.

Earlier, Finance Minister Anton Siluanov said that Russia will be forced to 2017 to expend funds to cover the budget deficit if this deficit will be reduced. Now for these purposes it is planned to expend the funds of the Reserve Fund. However, he noted that there is a risk that the reserves can be used quickly. The Central Bank in financial stability review noted that funds can be spent almost completely by the beginning of 2019.

“I think some of them (funds – ed.) will remain. The government will be careful to spend it, this is evident by their intentions. In this sense, I even think are actively using them, some resources will be”, — Kudrin said in an interview, answering the question, will the government save funds by 2018 or they will be burned completely.

In his opinion, the portion of NWF, which is still not invested in infrastructure projects, it is necessary to attach to Reserve Fund, it will allow the government to return to the issue of tax increases for the next two years. “Invested in the projects a small part of the NWF, even less. The one that is nested, it must be maintained in these projects”, — noted ex-the Minister of Finance.

“The part that is not invested in infrastructure projects, invested in other securities, and the essence of my proposal lies in the fact that they don’t need to now invest in any infrastructure projects, they should, in fact, attach to the Reserve Fund and rely on them when carrying out any other tasks of tax and budget policy,” he added.

“That is, the use of these resources as reserves will not return to the issue of taxes on two challenging years, maybe, or decrease the government’s intentions to raise taxes, or to cover this hard period of falling incomes, i.e. they should be used more as a reserve for the budget and not as a special investresurs,” said Kudrin.