Russia’s unsustainable budget deficit

Interesting comment on Russia’s 3% budget deficit from Sergei Guriev, professor of economics at Sciences Po in Paris:

The 3 percent GDP deficit is not large but because Russia lacks access to financial markets, it can rely only on its Reserve Fund. Given that the Reserve Fund accounts for only 6.7 percent of GDP, it is not surprising that the government stopped drafting three-year budgets.

Read more at Deglobalizing Russia – Carnegie Moscow Center – Carnegie Endowment for International Peace

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s