Russia shouldn't spend to accelerate growth - Shuvalov
MOSCOW. Jan 20 (Interfax) - Russian First Deputy Prime Minister Igor Shuvalov said that it was important not to allow public spending to increase against the background of slow economic growth, as was seen in the 1980s.
"In fearing slow economic growth, it is important not to immediately provide government resources to spur economic growth. This is what happened in the Soviet Union in the middle of the 1980s, when the acceleration policy was announced and money was poured into the economy. This spurred growth, and then resulted in sharp decline, during which a budget deficit and debt had become the sickness of our economy until the beginning of the 2000s," Shuvalov said in an interview with the magazine The New Times.
He said that the budget rule does not allow the government to spend its oil revenue "like it did before." Shuvalov said that "it is necessary not to 'stray' from this, as revenue from oil will make up less than 50% of the budget in 10 years, while the rest will be made up from the non-energy field."
He said that the government is currently ready for any scenario to unfold, including a major worsening of the global state of affairs, that is, a fall in oil prices. "We have the resources to respond to this. I mean carrying out social obligations. If the situation will be completely harsh, then that means it is necessary to tap into reserves. And we have quite a bit saved," Shuvalov said.