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Siluanov: Moderately Tight Budget and Soft Monetary Policy to Drive Economy

Budget must be balanced and even moderately tight, and monetary policy, in turn, must be relatively soft for the economy to be resilient, believes Anton Siluanov, Russian Minister Of Finance.

«The formula of our economy’s resilience and its influence on budget must rely on balanced and even tight budget and relatively soft and adequate monetary policy. Such formation is optimal for us, because if we soften our budgetary policy and keep the monetary one soft, it will be impossible to provide budget assistance to all sectors and subsidize high interest rates», said Siluanov at the forum «RUSSIA CALLING!».

«Budget’s being relatively tight and balanced, as well as low interest rates — these are all we need to drive the economy. Business must be developed not with the help of budgetary stimulus packages, but by means of cheap loans», stressed Minister.

Siluanov is confident, that the whole structure relies on the budget. «If our budget and budgetary policy are predictable, I’m sure, investors will trust us, as predictability of such macroparameters, as inflation and exchange rate is a precondition for trust. That’s why budget is really important to us. Based on this, we are working out our policy for the next three years with a view to secure such predictability for business, financial instruments policies and budget’s influence on the economy», said Siluanov.