Siluanov warns of wider budget deficit

Siluanov warns of wider budget deficit

Russian Finance Minister Anton Siluanov warned at a conference in Sochi that the budget gap will be wider this year than earlier forecast, forcing Russia to step up the pace of domestic borrowing.

The deficit may widen to 3.5% to 3.7% of gross domestic product this year, beyond the earlier estimate of 3.2%, according to Siluanov. 

The ministry is sticking to its target of narrowing the gap to no more than 3.2% of GDP next year and about 1% in 2019, Siluanov said.

“A budget deficit is the same as taxes. We take from the economy, withdraw money from banks, from financial companies that would work in the economy, which would lend to develop projects, we take that money out of the economy. It’s about the same effect as taxation," Bloomberg cited Siluanov as saying.

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