Deformation of Fiscal Policy and Debt Management as a Result of the Stabilization Fund Forming

In: Voprosy ėkonomiki: ežemesjačnyj žurnal, Heft 3, S. 20-32

Abstract

The article shows the systematic mistake in the form of underestimation of project budget revenues. It is accompanied by the artificial increase in budget deficit which causes excessive borrowings and debt growth while in fact budget surplus takes place. It is proved that state borrowing and saving of assets in the sovereign funds (Reserve Fund and National Wealth Fund) lead to a combination of negative effects related to both deficit and surplus budgets: artificial slowdown of economic growth and increase in expenses for debt service.