Investing.com investing.com 29 Dec, 2020 08:15 am

Russia to scale down state support for the economy in 2021 By Reuters

Russia to scale down state support for the economy in 2021 By Reuters
Russia to scale down state support for the economy in 2021

FILE PHOTO: Russian Finance Minister Siluanov arrives for talks with major Russian firms representatives in Moscow MOSCOW (Reuters) - Russia will scale down its state support of the economy in 2021, eyeing rising costs on servicing burgeoning state debt in the fallout of its response to the COVID-19 pandemic and the collapse of oil prices, Finance Minister Anton Siluanov said.Still, the state development bank VEB may buy into preferred shares of the state-run Russian Railways to provide the latter with the funds for its investment programme, Siluanov said.We can't withdraw all the liquidity from the market and finance spending," Siluanov said.Russia has to return to the budget rule in 2022, Siluanov said, referring to the budget system praised by the IMF and the World Bank.

"If so, then we can't keep our spending high all the time," Siluanov said.Russia has no plans to raise taxes, Siluanov said, repeating the same line from the previous years that, however, did not prevent Russia in 2020 from hiking taxes on some sectors and on Russians earning more than around $67,800 a year.

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