Expenditure obligations of the Russian budget cannot increase even with the growth of oil prices. On Friday, October 28, said Finance Minister Anton Siluanov, reports TASS.
“We believe that even if you improve the appearance will occur in the first place [rise] in oil prices. We here in no event it is impossible to increase our expenditure commitments, it is necessary to reduce the waste of reserves, in order to accumulate a safety cushion” — leads the Agency of his word.
Siluanov also said that the Finance Ministry will prepare a proposal for further fiscal consolidation in the event of declining revenues.
“We are talking about the revenue and the expenditure side. Measures taken in Russia and in other countries that are in a similar situation,” — said the official.
Earlier on 28 October, the government submitted to the state Duma a draft budget for 2017 and the planning period from 2018 to 2019. It is expected that the deficit next year will be 2.75 trillion rubles, or 3.2 percent of GDP. The purpose of the Ministry of Finance is its reduction to 1 percent of GDP in 2019.
The deficit in 2018 is planned at the level of 2.01 trillion, and in 2019, it will amount to 1.14 trillion rubles. The difference between costs and revenues will be offset through borrowings, primarily domestic, as well as the spending of the sovereign funds. Reserve Fund by the end of the three year olds will be fully spent, and the national welfare Fund will remain 500 billion rubles.
