Glazyev called the idea of freezing spending budget “insane measure”

The proposal of the Ministry of Finance to freeze all Federal spending in nominal terms for three years is “absolutely insane measure”. This was stated by Advisor to the President of Russia Sergey Glazyev on the forum “Strong Russia 2016”, reports TASS.

He explained that this decision will lead to a reduction in real costs annually by 10% and will exacerbate the fall in demand. “So, will continue to drive our economy into stagflation trap”, said the official.

He added that in many countries measures are taken to stimulate economic growth, and in Russia “a policy to prevent economic growth.”

In late June, “Vedomosti” reported that the Ministry of Finance proposed to fix the budget expenditures at the level 15,78 trillion per year in the period from 2017 to 2019. Practically, this means that Federal spending in real terms will be reduced over three years by about 20% compared to the level of 2016.

On the eve of the 4th of July, Vedomosti, citing two Federal officials said that the meeting with Prime Minister Dmitry Medvedev approved the proposal of the Ministry to freeze Federal spending. According to interlocutors of the edition, this measure agree, and the President of Russia Vladimir Putin.