IMF says Russia needs to revise budget spending in 2016

WASHINGTON, Feb 25 (PRIME) -- The International Monetary Fund (IMF) recommends Russia adjust budget spending plans for 2016 and conduct fiscal consolidation in the medium term, as follows from a report seen by PRIME late Wednesday.

“In Russia, given the magnitude of the negative shock to revenues from lower oil prices, some spending adjustment is necessary in 2016, and fiscal consolidation should continue over the subsequent medium term,” the IMF said.

Moscow needs to restart three-year budgetary planning in order to make policies more predictable, the fund said.

According to the statement, the speed of economic contraction caused by the oil price plummeting and sanctions will decrease.

The IMF approves the Russian central bank’s pause in monetary policies’ easing. It was a suitable measure to limit inflation amid the weakening ruble, external risks and the need to build trust after introduction of inflation targeting, it said.

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