The head of VTB Andrey Kostin called for the resumption of the privatization program in Russia to finance priority projects. He wrote about this in a column for RBC, published on April 11.
Kostin named three priorities in the development of the country: the rapid construction of new logistics corridors and transport infrastructure, the restart of entire industries, as well as the strengthening of defense capability through the development of the military-industrial complex (MIC) and the successful integration of new regions.
According to him, in order to achieve these goals, it is necessary to restart privatization, spend more actively financial reserves and public debt, and redistribute the country’s budget funds.
Kostin believes that the resumption of privatization will not only replenish the budget, but also give impetus to areas where initiative and the ability to make quick and innovative decisions are important. Private initiative is capable of providing them, he noted.
Also, the head of VTB said that an alternative source of financing could be an increase in the level of public debt. The difference between the current level of public debt (about 17% of GDP) and the considered “problematic” threshold (above 60%) creates a margin of safety. Without a threat to financial stability, the economy can thus receive an additional 70 trillion rubles. Kostin stressed that these funds can also be attracted by involving leading banks in the placement of federal loan bonds.
In addition, another source of money can be liquid funds from the National Wealth Fund, from which priority investment projects are already being financed.
Anticipating concerns about inflationary risks posed by the expansion of the money supply, Bones assured that active investment in development helped slow price increases. In good shape: the Russian money-box added 800 billion rubles The fund consists of 60% yuan and 40% gold
Earlier, on April 3, Russian Finance Minister Anton Siluanov announced that all decisions planned in Russia for 2023 financed regardless of the difference between income and budget expenditures. According to him, the situation with the budget balance in the country will normalize within a year.
The day before, Siluanov announced that the Russian budget was replenished with revenues in the amount of 2.5 trillion rubles. At the same time, he explained that the oil and gas revenues of the federal budget of Russia lag behind the plan due to the price situation, but expressed confidence that all obligations by the government will be fulfilled, which he has no doubts about.
On March 1, it was reported that by the last days of February 2023, the federal budget was executed with a deficit of almost 4 trillion rubles. At the same time, the volume of income amounted to 1.4 trillion, expenses – 5.4 trillion.
At the same time, the Ministry of Finance predicts a shortfall of 2.9 trillion, or 2% of GDP, by the end of the year. Thus, the deficit at the end of the month exceeds the annual plan by 1.1 trillion. The increase in the deficit at the beginning of the year is primarily due to the decline in oil and gas revenues due to the low average price of Urals.
In November 2022, the State Duma approved the federal budget of Russia for 2023–2025, which provides for a gradual reduction in the budget deficit from 2 to 0.7% of GDP.