The government is preparing alternative versions of the main parameters of the Federal budget for 2017-2019 in addition to developed by the Ministry of Finance in the summer.
Alternatives is three. The first assumes only the increase in VAT, the increases in income taxes, and the third only increase emissions of public debt, the newspaper “Kommersant”. The choice between the options will take place by October 3 and 4.
The basic version of the document is based on invariability of the tax regime until 2018, rated to limit Federal spending through 2019 level of 2016 and a budget deficit of 3.2% of GDP in 2017, with subsequent annual reduction by one percentage point per year and the possibility of compliance of the Central Bank target for inflation of 4% in previously to declare the parameters.
To provide alternative options with a large budget deficit, covered or increase in the emission of public debt, or the growth of personal income tax or increasing VAT charged to the Ministry of Finance and economic development.
According to the publication, while none of the option is not selected. In addition, while the White house focused on the concessions departments for the correction of the budget this year.
However, regardless of whether the selected baseline or one of three additional, part of the new budget decision has already de facto accepted.
This increase in the rate of transfer by state-owned companies dividends to 50% of the profits (and profits of all FSUE) and the reduction of Federal transfers to state corporations and state-owned companies “in the amount unused of temporary funds”.
It also increases the size of the payment for use of water biological resources and for the use of Federal forests.
Finally, the Ministry of Finance, Ministry of economic development and the Ministry of labor must approve the size and date of the growth rate of payments to the Pension Fund in excess of the current threshold and enter payments “above threshold” in the social insurance Fund. Most likely, this is an increase from 2017-2018 total burden on employers in case of refusal to change the tariffs.