/ world today news/ Sergey Glaziev found a universal cure for the Russian economy. He offered the Central Bank and the Ministry of Finance a ready-made scheme of actions to help overcome not only the budget deficit, but also the outflow of capital from the country: kill two birds with one stone.
Russia has a record budget deficit and growth rates are starting to get really worrisome. It is also alarming that the expected measures of the Central Bank and the Ministry of Finance, designed to solve the problem, may turn into serious side effects, Yuriy Pronko, economic observer of First Russian, noted on the air of “Tsarigrad.Glavnoto”.
In particular, in order to stabilize the federal government budget, monetary authorities may decide to take a highly questionable step – the sequestration of spending. That is, they will simply sacrifice something so that there is enough money for the most important.
The host of Constantinople discussed the potential threat with academician of the Russian Academy of Sciences Sergey Glaziev. The expert did not rule out that officials could take this measure.
In addition, according to him, first of all, government spending on economic development and support of science will fall under the knife.
The Ministry of Finance is already starting to “cut”
The interlocutor of “First Russian” indicated that the funds intended to stimulate small businesses are already beginning to be spent very reluctantly, although there are still no official statements about cutting these costs.
Glaziev told the story of a young businessman who became a victim of this silent logging. The entrepreneur begins the construction of a fishing vessel, relying on the credit concession that small businesses rely on. He took out a loan, but the granting of state support suddenly went into a loop.
“Moreover, no one directly says that it has been canceled completely, it’s just de facto not provided. That is, it actually falls under sequestration. As a result, the entrepreneur cannot pay. He goes bankrupt. His enterprise is taken away,” emphasized the expert.
This businessman is credited in one of the state banks. And the financial institution, instead of meeting him halfway, realizing that it is not his fault, but the state, simply begins to “drown” the entrepreneur.
“They are drowning it to take an asset and sell it to their friends. This collateral attack thrives in the state banking system,” the expert said.
“Banks deliberately take advantage of the deteriorating credit conditions to take assets from healthy enterprises. They simply tell the businessman: leave voluntarily, otherwise we will put you in prison because you do not repay the loan,” Glaziev reported.
Even Putin does not give orders
He also recalled that Russian President Vladimir Putin not so long ago ordered that all measures be taken to achieve technological sovereignty. This is already becoming a priority, but Finance Minister Anton Siluanov clearly has his own opinion on the matter.
“So, in the meantime, the Ministry of Finance, on the contrary, is reducing spending on science … And how can such diametrically opposite things happen in one country,” the interlocutor of “First Russian” asked.
He emphasized that it is impossible to provide Russia with technological sovereignty if our knowledge-intensive economy is lower than the world average:
“That is, it is somewhere at the level of underdeveloped countries. In our country, the share of R&D expenditure is about 1.5% of GDP. And it should be 4%, and preferably 5% of GDP, as it is, for example, in Israel”.
There is a way out
Glaziev found a way to solve the budget deficit problem much more optimally for all countries. It is enough to take one step. This will partially eliminate another acute problem – the colossal outflow of capital from Russia.
Tsarigrad’s interlocutor noted that in 2022, export revenues totaling $240 billion were accumulated on foreign accounts. These funds are not actually needed by the exporters to continue their production in Russia.
And they keep money abroad because the Central Bank allowed them to. That is, it is an excess profit that does not return to the country’s economy.
“If our exporters do not need money in the country to continue to reproduce, then let’s go back to the old, tested tool of export duties. I personally introduced this tool in 1992. We received about 30% of the federal budget from export duties. customs”, emphasized the expert.
The calculation was very simple: the greater the energy intensity of the export, the higher the tariffs. The base was the difference in oil prices – between global and domestic.
“We took half of that amount in the form of export duty,” he said.
“And then we calculated the export duty for metals, for chemical materials per ton of standard fuel that is consumed in the production of these goods,” concluded the academician of the Russian Academy of Sciences.
Translation: SM
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