Excessive State Expenditure Makes Russia Raise More Loans

The International Bank for Reconstruction and Development agreed to give Russia a loan of $200 thousand

Before the new year the World Bank acknowledged that its policy in Russia turned out to be a mistake. The bank promised to conduct a more efficient funding that would bring more good both to itself and to Russia. The Russian government had no objections. The today’s resolution, which was signed by Prime Minister Mikhail Kasyanov is a good example proof of that.

As RIA Novosti news agency was informed at the department of the governmental information, Mikhail Kasyanov followed the government’s example and approved the draft agreement with the International Bank for Reconstruction and Development (this bank is a part of the World Bank). Pursuant to the agreement, Russia will raise a loan in the sum of 200 thousand US dollars for funding the state expenses governing project.

We have to acknowledge to our own shame that state expenses are still a weak point in the activity of the government, despite all efforts taken by Finance Minister Aleksey Kudrin. It was repeatedly stressed at governmental sessions that it is very hard to cut the state expenditure. Furthermore, the costs of the state are always irrational. It is not ruled out that the inability to optimize the state expenditure is a peculiar feature of the Russian government. This was probably the reason, why it was decided to attract foreigners to the solution of the problem. The loan was needed to pay their services. Although, the excessive state spending is also a big issue for the European Union as well.

This way or other, the decision has been made. Now the Russian Finance Ministry will sign a separate document with the International Bank for Reconstruction and Development. After that the ministry will get the money and start spending it, supervising its targeted use. This is like a jack of all trades, and the West does not really welcome this, by the way. On the other hand, the World Bank has acknowledged is mistakes, as well as the complete incomprehension of Russia’s specific character. At the end of the day, Finance Minister Aleksey Kudrin enjoys a good reputation abroad. Maybe, it will work.

Kira Poznakhirko PRAVDA.Ru

Translated by Dmitry Sudakov