Putin’s Budget Giveaways Reflect Russia’s Growth Realit

(Bloomberg) -- Vladimir Putin is making good on his pledge to boost spending, though the modest scale of planned stimulus suggests Russia’s president recognizes the economy needs long-run investment more than a short-term boost, according to Bloomberg Economics. Giveaways could make a meaningful difference in living standards. Yet the spree is financed with higher revenue forecasts and a limited drawdown from Russia’s rainy-day fund, through its acquisition of the central bank’s stake in Sberbank PJSC. The fiscal stance remains cautious, with no increase in borrowing.

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