Russian city wanted to improve at the expense of reserves for a “rainy day”

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www.vsyako.netPhoto: Vladimir Astapkovich / RIA Novosti

Part of the funds of the national welfare Fund (NWF) should be used for the improvement of the 100 largest cities in Russia. Such a proposal was voiced by Chairman of VEB.Of the Russian Federation Igor Shuvalov, says family-owned Demyan Kudryavtsev, the newspaper “Vedomosti”.

According to him, in 45 cities there are 109 selected projects of water purification, the renewal of the transport and the creation of modern housing, improve the quality of services. In particular, there are projects in Arkhangelsk, Vladivostok, Kaliningrad, Makhachkala, Nizhny Novgorod, Sergiev Posad and Chelyabinsk reported in the Corporation. According to the newspaper, the decision has not been made, as specific proposals are prepared.

The money of the Fund is placed on Deposit of the Bank. As of July 2019, the volume of NWF was estimated 7.86 trillion rubles, which corresponds to 7.2 percent of GDP. The liquid part of the Fund stood at 5.7 percent of GDP. It is expected that by the end of 2019, it will amount to seven percent is a threshold, above which funds will be used to invest in new projects.

According to the newspaper, the controversy of investing the Fund will be one of the major government in the coming months. Earlier, the head of the Ministry Maxim Oreshkin already have offers to send money from the Fund for export support. In particular, in his opinion, it is possible to lend to buyers of Russian products, to provide concessional financing for the creation of production of Russian companies and service centers abroad. The Finance Ministry is inclined to afford to invest its funds into investment projects. The Bank of Russia has proposed to raise the threshold for the use of the Fund above seven percent of GDP.

The NWF was created along with the Reserve Fund in 2008 on the basis of the Stabilization Fund. The new structure was to act as a “safety cushion” in case of falling oil prices. The role of the Reserve Fund was to protect the Federal budget and the national welfare Fund is to provide a balancing of the pension system. But in 2017, the two agencies decided to merge, and additional oil and gas revenues began to flow into the NWF. Because of it, are the funds to Finance the budget deficit in case of falling oil and gas revenues.

Video, photo All from Russia.

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