19 Jun 2024 16:58

Russian Duma passes 2024 budget amendments at first reading

MOSCOW. June 19 (Interfax) - Russia's State Duma passed amendments to the 2024 federal budget at their third reading on Wednesday.

The government introduced the bill (No. 639656-8) to the lower house of parliament on June 3.

According to the document, total federal budget revenues for 2024 will decrease by 2.8 billion rubles or 0.01% to 35.063 trillion rubles or 18.3% of GDP. Spending increases by 522 billion rubles or 1.4% to 37.183 trillion rubles or 19.4% of GDP. The federal budget deficit widens by 524.7 billion rubles to 2.12 trillion rubles or 1.1% of GDP instead of the previously approved 0.9% of GDP.

Oil and gas revenues in 2024 will decrease by 519 billion rubles to 10.985 trillion rubles, while non-oil and gas revenues will rise 516.2 billion rubles to 24.077 trillion rubles.

Anticipated oil and gas revenues are expected to fall due to a reduction in forecast excess profit tax on hydrocarbon production, mineral extraction tax on natural gas, customs duties on hydrocarbons as well as an increase in excise refunds for petroleum feedstock for processing. Certain oil and gas revenues will increase due to higher mineral extraction tax receipts for oil and gas condensate.

The bill reflects 173.1 billion rubles of revenues that were not previously forecast, of which 105.3 billion rubles from the transfer of a portion of Central Bank of Russia profit for 2023, other non-tax income by way of compensation related to production sharing agreements totaling 51.6 billion rubles and windfall profit tax of 5.1 billion rubles.

The new budget parameters assume GDP for the year will be 191.437 trillion rubles and inflation 5.1%, the previous forecasts being 179.956 trillion rubles and 4.5%.