Russia: Postponed Reforms, Poky Tax ReceiptsBy
Put on your rose-colored glasses. It's budget time in Russia. Parliament will soon begin debate on a 1998 budget that unrealistically expects $62 billion in revenues. The plan is almost sure to pass, even though similarly fantastic forecasts have forced huge spending cuts in the past two years (chart). Moreover, borrowing-cost targets will have to be revised up, since the Central Bank of Russia hiked interest rates sharply on Nov. 10 in order to defend the ruble.
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