The state Duma meeting on Friday, November 18, adopted in the first reading the draft Federal budget for 2017 and the planning period of 2018 and 2019 with a deficit of more than 2.75 trillion rubles, reports TASS. Voted for the bill 334 deputies, against – 100, no abstentions. It is expected that the lower house will consider the bill on the Federal budget for 2017-2019 second reading at the meeting of December 7, in the third reading on 9 December.
Doubt approval was not noted recently in this regard, the newspaper “Kommersant”. Decision of the Duma of the seventh convocation dependent on the position of “United Russia” that has announced that it will vote for. The willingness to vote against the project budget stated in the Communist party and “Fair Russia”, but their vote on the fate of the document is not affected.
While the budget for the next three years turned out to be one of the most complex and hard for the past 14 years.
The draft budget presented to the Duma, Finance Minister Anton Siluanov, who said that the state fully Fund the budget 2017-2019 years, all primary spending.
– Boris Titov has called Russia’s budget is a budget of stagnation and stagnation
“In the budget, despite all the restrictions, to the full extent provided by the fulfillment of social obligations, indexation of pensions and allowances in accordance with applicable law. Considered the cost of increase in wages. Reliability lies in the fact that regardless of external economic changes we will Fund in full all first priority obligations of the state. Any changes in the external economic environment priority socially significant expenses will be performed over a projected three-year period,” he said.
The draft budget on the basis of forecast world oil prices of $ 40 per barrel average for the year.
The budget deficit will be about 2,7532 trillion rubles, i.e. more than 3% of GDP. In subsequent years, the budget revenues are expected to grow and the expenses and the deficit is reduced.
To cover the deficit in 2017 is expected due to the use of the Reserve Fund (in the amount of 1.15 trillion rubles) and the national welfare Fund (668,2 billion). The result is a Reserve Fund by the end of 2017 will be fully exhausted, and the national welfare Fund will remain of 4.19 trillion rubles.
The project foresees the increase in borrowings in the domestic market to over 1 trillion of net borrowing in 2017. Earlier Anton Siluanov said that the net volume of borrowing in the domestic market in 2016 will amount to 400 billion rubles.
Siluanov, introducing the draft law, called any imbalance of the budget is actually a tax on the Russian economy because if there is shortage of budget, the government withdraws resources from the economy for allocation via the budget system.
“We are reducing the budget deficit including due to the fact that any imbalance of the budget in the same tax because we’re pulling these resources out of the economy, seized for redistribution through the budget system,” he said.
The Finance Minister also explained that the budget is a tool to ensure macroeconomic stability, predictability.
“We are not increasing taxes, we expect a decrease in inflation, we are in the framework of the budgetary parameters, make available credit – is the basis for the resumption of economic growth envisaged in the forecast for the next three years. We had a high growth rate of more than 5% in those years when the amount of redistribution through the budget was a mere 29% of GDP. Now we have redistribution through the budget system 37% of GDP and have a negative growth rate,” said the Minister.
“An important structure costs and important expenses that affect the growth. The government proposes to change the structure of expenditures, directing spending primarily on those areas that provide economic growth,” he stressed.
Thus a serious increase in borrowing on the domestic market, according to Anton Siluanov, could adversely affect interest rates.
“We can’t afford, so the question of imbalance of the budget, the budget deficit is linked to macroeconomic objectives and sources of financing the budget deficit, which affect the situation on the financial market”, – said the Minister of Finance.
To assist in the enforcement budget, according to the head of the Ministry of Finance, is intended to improve tax administration. It is, according to his Department, will annually bring to the budget revenues in the amount of from 150 to 200 billion rubles.
“Companies that currently pay taxes, are non-competitive field compared to those who do not pay these taxes. Therefore, the issue of administration, the issue of control over taxpayers is the task of the Federal tax service, Federal customs service. And the issues of integration and information databases, and interaction on which we are now very substantive work, will allow us in the next few years to attract between 150 and 200 billion rubles annually of the revenue from improvements in tax administration,” says Siluanov.
In addition, as the Minister said, the government intends to gradually reduce the amount of budget loans to the regions. “The subjects of the Russian Federation will sign a binding agreement with the Ministry of Finance, which will declare the creation of jobs and increases in investment. It should stimulate the subjects of the Russian Federation to establish their own revenue base”, – he added.