Not sure if this is nto economical too, but IMHO very important politic-wise news:
Mishustin's cabinet received an economic ideologist from the Kremlin
Will the government abandon the “no money” thesis to boost GDP growth
Rearrangements in the financial and economic bloc of the government indicate a change in priorities - the theme of controlling budget spending gives way to stimulating GDP growth. But experts do not advise waiting from the cabinet for a sharp increase in costs
The financial and economic bloc in the new government of Mikhail Mishustin has undergone radical changes, and the most important of them is the appointment of Andrei Belousov, First Deputy Prime Minister, who has served as president’s assistant for economics for more than six years. Former First Deputy Prime Minister Anton Siluanov agreed to a formal demotion, retaining the post of Minister of Finance.
Belousov is a professional economist, who is usually referred to as conductors, that is, to supporters of active state intervention in the economy. Belousov’s figure is associated with the idea of boosting national projects and their active state financing, says Dmitry Dolgin, chief economist at ING for Russia and the CIS. “Probably, the intensity of spending underexplored budget expenditures that have accumulated in the region of 1% of GDP, and the implementation of national projects will accelerate,” he suggested.
In 2019, the federal budget was not implemented by 5.8%, or more than 1.1 trillion rubles, which was the maximum deviation from the planned amount of expenditures since 2007. Including national projects did not have time to spend about 150 billion rubles. The new prime minister has already said that the work on national projects will be “forced” - Belousov’s task will be to prevent the Ministry of Finance from blocking the allocation of funds for these purposes (something that could be easily done when the positions of the Minister of Finance and the First Deputy Prime Minister were combined Siluanov), says Tom Adced, Macro Advisory Research Director for Moscow.
The previous government was associated with anti-crisis policies, fiscal consolidation, the restoration of reserves and increased taxes amid falling oil prices and sanctions, as well as the unpopular pension reform that affected its ratings, Renaissance Capital notes. The new cabinet will, on the contrary, be associated with supporting economic growth, implementing national projects and social initiatives from a recent message from President Vladimir Putin, an investment bank writes in a review.
According to various estimates, the implementation of the announced measures will require an additional 300 billion to 500 billion rubles. only in 2020. Petr Sidorov, an economist at Deutsche Bank, agrees that under the new government, the risk of such a significant under-utilization of budget funds as in 2019 will decrease, and Renaissance Capital sees the prospects of "limited budget incentives."
It will probably not be necessary to change the design of the budget rule (sets the marginal cost of the budget, excess oil revenues more than $ 42.4 per barrel are allocated to reserves) in order to finance the president’s costly social initiatives at a level of about 0.5% of GDP per year - I have already spoken about this Siluanov. The reserves are planned to be found in a spending closer to 100% of the budgeted appropriations and the redistribution of expenses from lower priority to social. In addition, you can spend more money from the National Wealth Fund (NWF) within the limits allowed by law (NWF investments are not formally considered as expenses, and therefore are not bound by the budget rule. - RBC ), says Oleg Shibanov, NES professor of finance.
Подробнее на РБК:
finally 1.1 T Rub surplus and social programmes underfunded time seems to be over. look at RBC commentator: in order to finance the president’s costly social initiatives at a level of about 0.5% of GDP per year
+++ the implementation of the announced measures will require an additional 300 billion to 500 billion rubles. only in 2020
whe budget has surplus of 1.1 trillion Rub?! WTF
Tsavo Lion wrote:
Now the US is getting ready to directly confront Russia along its perimeter. But they will fail like Turkey, Sweden, England, Poland, France, & Germany before them.
Pity Tramp & his interest group is about to be kicked out by democrats's deep state, with people li,ke him some reasonable compromise could be achieved.