IMF suggests Russia tighten fiscal rule in long term
MOSCOW. April 30 (Interfax) - The International Monetary Fund (IMF) suggests Russia keeps its fiscal rule and tightens it in the long term.
This mainly because the non-oil deficit was a high 10.4% last year, which makes Russia vulnerable to possible changes in the price of oil, Antonio Spilimbergo, head of the IMF mission in Russia, told a press conference at the Interfax head office.
He said the Russian authorities had decided to retain and abide by the fiscal rule, which the IMF welcomes.
The IMF recommends tightening the rule as conditions improve in order to lower the non-oil deficit. Some fiscal consolidation will take place this year as the result of observing the fiscal rule, Spilimbergo said.
Even so, it will take some important steps for that consolidation to continue. As noted in previous years, the key issue here is reforming the pension system. The pension reforms that have already taken place are the first step, but increasing the retirement age is key, Spilimbergo said.
