Putin to Meet on Stimulus as Government Said to Fight Over Cash
By Evgenia Pismennaya - Jun 9, 2013 4:59 PM ET
Russian President Vladimir Putin is set to meet with top officials today to resolve a dispute over stimulus measures to accelerate economic growth as the Finance Ministry fights to hold down spending.
Putin will discuss the economic plan submitted by the government last month, Dmitry Peskov, the Kremlin’s spokesman, said yesterday by phone.
The government remains deadlocked over how to fund state investment projects, with the Finance Ministry insisting on repayment with interest to protect the budget, according to a copy of the plan obtained by Bloomberg. Expanding the central bank’s role to oversee the economy is also open for debate, according to the plan.
Putin, 60, faces the weakest economic expansion since a 2009 contraction as demand wanes for Russian commodity exports and inflation (RUCPIYOY) keeps the central bank from cutting borrowing costs. The Finance Ministry is battling to balance the budget after Putin pledged to boost social spending in the run-up to his 2012 election for a third term in office.
The Finance Ministry objected to the Economy Ministry’s recommendation on increasing capital at Vnesheconombank, the state development bank known as VEB, to boost financing for government projects and seeks to cap the use of the country’s oil wealth funds, according to the plan.
more:
http://www.bloomberg.com/news/2013-06-09/putin-to-meet-on-stimulus-as-government-said-to-fight-over-cash.html
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