As his budget message was being drafted, and its think tank was taking stock of budgetary policies in 2005, there were heated debates on Stabilisation Fund spending. They finished with the President giving an express order not to cross the macroeconomic limits by a single rouble.
"We have achieved macroeconomic stability, and we are not to let slip the chance it gives us. Whatever the government may be doing must be done within pre-set macroeconomic limits," our informant quoted Mr. Putin.
As the budget message has it, and expediency demands, money is to be drawn from the Stabilisation Fund solely to pay the foreign debt and replenish a Federal Pension Fund deficit, unless other finance sources are available for the purpose.
Our interviewee stressed an essential importance of that message clause, what with a wide range of ideas as to what Russia might afford on Stabilisation Fund money.
The current Russian macroeconomic situation is steady and promising, even despite certain alarming trends. Thus, it is quite possible to keep the inflation at a ceiling 10%. As for the rouble rate going a mere 7% up, that is a disputable point. "The rouble will certainly get stronger," said the Kremlin man. He does not think it a dire prospect. "We must merely be ready to face it-we are to know what may come of it, and try to get more competitive." True, higher rouble rates may deal a painful blow on Russian-based industrial companies, whose offers will lose to rivals in the global market, but that will by no means send Russian industry into a collapse. It will merely make a certain pressure on companies.
As for the Stabilisation Fund to fill in a Pension Fund deficit, our informant thinks there will be none. "We have every chance to finance all budget funds-social welfare being no exception-with no deficit," he said.
Russia must make efforts against a welfare fund deficit. Then it will not need to draw from the Stabilisation Fund. It is extremely undesirable to make spendings out of it, and we shall do all we can not to touch it, stressed the interviewee.
