The Russian Finance Ministry will spend 2-2.5 trillion rubles ($30.3-38 bln) from the Reserve Fund and net borrowings will amount to about 300 bln rubles ($4.6 bln) this year, Minister Anton Siluanov said on Thursday at the St. Petersburg International Economic Forum (SPIEF).

“Net borrowings will be about 300 bln rubles ($4.6 bln) this year; reserves to be spent will range from 2 to 2.5 trillion rubles ($30.3-38 bln),” Siluanov said.

However, growth of the Russia’s budget deficit to 3-5% of the GDP will result in higher net borrowings.

“Indeed, if the budget deficit is 3 or 5%, then the amount of net borrowings will have to be higher,” Siluanov said.

The minister has stressed that the finance ministry would not use the whole of the Reserve Fund, and a safety cushion will remain.

“We’ll keep the Reserve Fund, won’t use the whole of it. That’s why we’ll be reducing the expenses of the Reserve Fund within the next three years keeping a safety cushion and gradually boosting the volume of domestic borrowings,” Siluanov said, adding that the issue is not about borrowings in foreign exchange and it is only possible to finance the budget using domestic borrowings.