SOCHI. Sept 19 (Interfax) - Increasing borrowing to cover Russia's budget deficit will not benefit the economy and will lead to the growth of uncontrolled borrowing or an increase in the tax burden, Finance Minister Anton Siluanov believes.

"If we go into debt, then ultimately this will lead to either uncontrolled borrowing or an increase in the tax burden. In the current conditions, to say that now we'll borrow, divide it up and this will benefit the economy - this is a mistake," Siluanov said at a business breakfast organized by Sberbank at the investment forum in Sochi.

"It would seem that to take more money from the market and divide it up through the budget, well that would be great. This is sheer delusion. If we will take even more resources from the market and divide them up through the budget, it's not a fact that this will be effective," the minister said.

He said that if borrowing is increased to cover the deficit other commercial players will be deprived of these resources.

"The Central Bank will not print more money into the economy, this would be inflation. It won't do this. By removing resources through the budget, we deprive our businesses, banks of private investment. This is absolutely the wrong approach," Siluanov said.

He added that the non-oil and gas budget deficit is currently 10% of GDP. "If we didn't have oil and gas