Medvedev rejected the idea to print more money to fill the budget deficit

Printed sheets of hundred-ruble banknotes at Perm printing mill of Goznak

Photo: Vladimir Smirnov/TASS

Prime Minister Dmitry Medvedev supported the idea of Minister of Finance Anton Siluanov in the matter of reallocation of funds to priority projects. To print out the money power is not going to, he said

The Russian authorities will print more money so as not to accelerate inflation, said Prime Minister Dmitry Medvedev supported the Minister of Finance Anton Siluanov in the matter of reallocation of funds to priority projects.

“Regarding finances, we understand how things are today. I cannot support the Minister of Finance. If we agree that the priorities as we have agreed, we therefore need to reallocate the money. There is nothing to do with new money we will create. To print out we are not going to inflation is not to disperse”, — he said (quoted by “RIA Novosti”).

The Prime Minister urged to optimize budgets and to channel available funds to key priorities. “That is something we can correct, let’s see, what to do in the near future. But first of all, pay attention to optimization, and here you have no one to blame will not” — said Medvedev (quoted by TASS).

In may, the business Ombudsman Boris Titov, and presidential adviser Sergei Glazyev made at the presidential Council a proposal for “controlled emission”. Former Finance Minister Alexei Kudrin spoke out against this idea, noting that the implementation of this proposal will lead to lower economic growth.

Earlier, the head of the Central Bank Elvira Nabiullina said that Russia’s “quantitative easing” is not suitable, as it can cause outflow of capital and to accelerate inflation. Kudrin also said that measures such as uncontrolled money creation can be destructive for the economy.

In turn, President Vladimir Putin during the direct line with Russians in April 2016, said that the theme of “printing press” is being discussed in the press, “on the surface”. “The main thing is not to print money, the main thing — to change the structure of the economy”, — stressed the President.

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