Russian government gives general approval to 2017-2019 draft budget

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GORKI. Oct 13 (Interfax) – The Russian government on Thursday gave its general backing to the draft federal budget for 2017 and the planning period 2018 and 2019, the Cabinet’s press office told reporters.

The draft socio-economic forecast for the period was also approved.

“All the documents submitted for approval at the Cabinet meeting were approved. There will be some adjustments but on the whole the government is rounding the budget process off,” the spokesperson said.

The Cabinet also discussed draft monetary policy, fiscal policy, tax and customs-tariff policies and the draft budgets of state extra-budgetary funds.

The three-year budget envisages a deficit 2.744 trillion rubles (3.15% of GDP) in 2017, 1.989 trillion rubles (2.15%) in 2018 and 1.139 trillion rubles (1.15%) in 2019.

Planned revenue in 2017 is 13.437 trillion rubles and planned spending is 16.181 trillion rubles. Projected GDP is 86.806 trillion rubles and inflation is not more than 4%.

Forecast GDP is 92.296 trillion rubles in 2018 and 98.86 trillion rubles in 2019. Inflation should not exceed 4% in either year.

Revenue for 2018 should be 13.989 trillion rubles and for 2019 it should be 14.825 trillion rubles. Planned spending in 2018 is 15.9878 trillion rubles and in 2019 it is 15.964 trillion rubles.

In order to finance the budget deficit in 2017, a total of 1.151 trillion rubles will be allocated from the Reserve Fund, after which the latter will be exhausted; and 659.6 billion rubles from the National Welfare Fund (NWF). In the two years that follow, the NWF will allocate 1.14 trillion rubles and 136.8 trillion rubles, respectively to finance the deficit. Also, the deficit will be financed by 1.05 trillion rubles annually by raising funds with securities on the domestic market.

The proposed domestic public debt ceiling as of January 1, 2018 is 10.35 trillion rubles and the external debt ceiling is $53.6 billion or 48.7 billion euros; as of January 1, 2019 the figures will be 11.58 trillion rubles and $52.8 billion or 48 billion euros; and as of January 1, 2020 they will be 12.788 trillion rubles and $53.6 billion or 48.7 billion euros.

 

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