Russia's MinFin drafting three-year budget with view to disinflationary effect, might postpone some projects

MOSCOW. July 16 (Interfax) - In preparing the draft federal budget for the next three-year period, Russia's Finance Ministry will again try to coordinate with the objectives of the Central Bank's monetary policy, Finance Minister Anton Siluanov said.

"I agree, the [key] rate is high right now, but we're doing everything necessary in terms of the budget. By the way, we will also prepare the next budget cycle in this vein, so that the budget and monetary policy are implemented in the same direction. So that, if we're talking about budget stimulus, so that it corresponds to the monetary policy objectives set by the Central Bank, specifically the reduction of inflation and, accordingly, the reduction of the interest rate," Siluanov said in response to questions from senators.

He said the "coordination of the budget and monetary policy is one of the main objectives in the preparation of the financial plan for the next three years."

The prioritization of budget spending in key areas, such as defense, social programs and technological development, might require the postponement of a number of projects, Siluanov said.

"This year we provided resources for all our plans, and everything that is planned in the budget will be carried out. As for next year, here I agree with Anton Dmitrievich [Artamonov], senator colleagues who talked about the need for prioritization, and foremost it is necessary to carry out the objectives that the country faces - supplying the needs of defense and security agencies, the special military operation, support for people, technological development," he said.

"Therefore, in the preparation of the budget some infrastructure projects, their implementation, might be postponed until a later time. This is already a question of fine-tuning, a question of prioritizing financial capabilities," Siluanov said.