Russia's Stabilization Fund totaled almost $83.2 billion as of December 1, 2006, according to the Finance Ministry.
Alexei Kudrin said that could cause inflation to double.
"Proposing that this money be spent on building roads is equivalent to proposing that inflation be allowed to rise to 20%," he said.
He said the government has already increased spending from the Stabilization Fund, bringing an additional $10 billion into the budget.
The Stabilization Fund's money was initially intended to be invested in the highly liquid debt securities of foreign states but, instead, was converted into foreign exchange.
He also said the federal budget will continue to finance national priority projects to improve living standards even if oil prices fall to $48-50 per barrel in the next few years.
"We believe the price could fall to $50 and even to $48 per barrel. But we have a [substantial] safety margin," he said.
