ILYA SOKOLOV: “IN 2022-2023 THERE WILL BE ANTI-CRISIS MANAGEMENT OF THE ECONOMY”

The introduction of the fiscal rule was postponed till 2024 owing to the government’s priority expenditures. In his interview with the Ura.ru Ilya Sokolov, Leading Researcher of the Gaidar Institute said that it was normal for the government to introduce the spending cap in a favorable environment, while in 2022-2023 we would see an anti-crisis management of the economy.

On September 21, at the meeting with directors of the leading engineering schools of Veliky Novgorod President Vladimir Putin declared that the Russian economy would be working without the fiscal rule till the end of 2023 owing to the government’s high priority expenditures and budget deficit.

“For the next three years, the Russian budget is formed as an anti-crisis one and during a crisis the fiscal rule does not work because expenditures inevitably grow. It is a good fiscal discipline tool, but only in peaceful and favorable periods of economic development. When it happens it is an open question; the year 2024 is a relative period when the fiscal rule can be renewed because there are high uncertainties. Only time will show,” Ilya Sokolov notes.