OREANDA-NEWS. The fiscal policy that previously restrained the growth of the Russian economy is now becoming its support, said Bank of Russia Chairman Elvira Nabiullina, speaking in the State Duma. "The delay in budget expenditures had a restraining effect both on the growth of the economy in the first half of the year and on a more rapid decrease in inflation. Now the budget policy from the restraining growth is becoming supporting it",  she said.

She noted that the growth was supported by accelerated budget expenditures, as well as a good harvest and an increase in the output of other types of agricultural products, and wholesale. At the same time, Nabiullina said that a more rapid decline in inflation occurred due to a delay in budget spending.

“A faster decrease in inflation was largely due to delays in budget spending - we laid these expenses in our forecast, this influenced our decisions on the rate. If we understood the real spending schedule, we could probably have started lowering earlier key rate. Now we are seeing catch-up growth in spending", she said.