Demanded a more restrained attitude from Anton Siluanov
To keep our economy on an even keel, Anton Siluanov, Russia's Finance Minister, reckons we need to keep our hopes in check and steer clear of financial shocks. He stressed that the budget should be managed with an eye on unpredictable risks, like interest rate risks that the state shouldn't bear alone.
To create a safer haven for businesses, Anton encourages more companies to go public, and urges us to hedge external risks more stringently. Speaking at the St. Petersburg International Economic Forum, he mentioned that the Russian budget is gyrating wildly. But fear not, he assured, the fundamentals of taxes won't be altered, as they're vital for maintaining predictability.
Key rate and institutions, Anton stated, are crucial for sparking growth in our economy. He voiced his disagreement with the notion of revamping the economic growth model in Russia, given that our economy continues to expand annually by more than 4%, despite being under the pressure of sanctions. Instead, he suggests focusing on technological sovereignty going forward.
In essence, Anton proposes that we manage our budget cautiously and pragmatically, avoiding unnecessary risks while keeping our eyes on the prize—financial stability. To shore up the 2025 budget amidst dwindling oil revenues and a rising deficit, the government plans to draw on fiscal reserves, planning to withdraw around 447 billion rubles from the National Wealth Fund. Also, due to the budget shortfall, the Finance Ministry anticipates needing additional funding, likely through increased market borrowing. According to Anton, the ministry intends to stick to the recently introduced five-tier progressive personal income tax structure, aiming for social justice. Despite the challenges, Anton insists Russia remains committed to fulfilling its budget obligations, no matter the sanctions thrown at us.
Anton suggests that companies should hedge external risks more stringently and go public to create a safer haven for businesses, emphasizing the importance of financial stability. To manage the 2025 budget, the government plans to draw on fiscal reserves and increase market borrowing, with the Finance Ministry still aiming to maintain the five-tier progressive personal income tax structure for the sake of social justice.
