The Ministry of Finance and the Central Bank recommended financing the transformation of the economy at the expense of private capital

The transformation of the Russian economy can be achieved in two alternative ways: with the help of predominantly public or private sources of financing. This is stated in a joint presentation of the Ministry of Finance and the Central Bank, presented to the government on August 30 at a strategic session on the development of the financial market (Vedomosti has it, the authenticity of the document was confirmed by a source close to the Cabinet of Ministers).

The scenario, which provides for development primarily at the expense of public funds, can be implemented using two mechanisms. The first is by increasing the current expenditures of the treasury. This mechanism involves raising taxes, otherwise the budget deficit will deepen, follows from the presentation. Another mechanism involves spending from accumulated reserves, in particular the National Wealth Fund (NWF). According to a source close to the government, there were estimates at the meeting that the NWF could be exhausted before 2024 if investment from the fund’s resources is not limited. Earlier, another source, also close to the Cabinet of Ministers, said that it might be problematic to satisfy the requests of all departments applying for NWF funds.