Last year was rich in disputes between the Finance Ministry, economic development Ministry and the Central Bank, who discussed about the adjustment of budgetary rules, and the risks of a bubble in the consumer credit market and on the advisability of investing in liquid funds of the national welfare Fund (NWF) when they reach the threshold of 7% of GDP. Not so visible but no less fierce were the squabbles regarding the mitigation of monetary policy (between the Ministry of economy and the Central Bank) and funding of national projects (between the Finance Ministry and the same Ministry of economy), which in the first nine months amounted to only 52,1% (in average Federal spending level at 62.9%, according to the calculations of the accounting chamber).
the Argument nowhere
Almost simultaneous surge of these debates is not accidental. The deceleration of economic growth from 2.3% in 2018 to 1.1% in the first three quarters of 2019, according to Rosstat – could not fail to arouse regulators ‘ desire to shift responsibility on each other. In the coming year they will be even more difficult to avoid such temptation. Because even with a small acceleration of GDP growth (to 1.7% versus 1.3% in 2019, according to budget projections of the government) it will still give not only the General public but even to the average for the CIS (2.6% and 2.1% respectively, according to the forecast of IHS, Markit). The main reason for this is the weakness of domestic demand, which the Central Bank in 2019 had five times the lower estimate of inflation at the end of the year (5-5,5% in the forecast from December 2018 to 2.9-3.2% forecast a month ago).
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