Russia will not scrap its fiscal rule, minister says

• Siluanov said that the oil price level would not be changed, adding that his ministry might increase state borrowing next year to cover at least part of the budget shortfall.
• The ministry is already increasing borrowing this year for the same reason.

MOSCOW: Russia does not plan to scrap its fiscal rule, a tool which allows it to build up rainy-day fund and maintain a certain macroeconomic stability during periods of low oil prices, finance minister Anton Siluanov said on Thursday.

Media reports in Russia and the West this month said the government was considering changes to the fiscal rule, while some analysts have called to scrap the rule or at least temporary change the cut off price of oil, currently at $42 per barrel, to allow the budget a greater flexibility to fight economic fallout from coronavirus pandemic.

Siluanov said that the oil price level would not be changed, adding that his ministry might increase state borrowing next year to cover at least part of the budget shortfall.

The ministry is already increasing borrowing this year for the same reason.