Russian President instructs on new budget regulations

President of Russia Vladimir Putin asked the government to introduce new budget rules by the end of July to boost growth and protect the economy from the risk of a serious recession.

Speaking at a meeting on June 7, President Putin stated that the authorities had begun to review the federal budget for the next three years.

He emphasized that the basic problem is to develop budget regulations, not only to ensure the stability of public finances, but also to contribute to the growth of the Russian economy.

President Putin did not detail the new regulations, but said regulations could be loosened to allow more funds to restore economic activity.

Current regulations place limits on how and in what areas National Investment Fund (NWF), Russia’s $198 billion, could be used as the government needs to increase its cash flow to meet its pledges to increase pensions, social payments and support for big businesses. .

In May alone, the NWF spent $4 billion on preferred stock purchases of Russian Railways. Other state-owned enterprises, including airlines Aeroflotis also waiting for cash support in response to Western sanctions.