Russian Duma committee backs 2027-2029 budget for first reading

MOSCOW. Oct. 26 (Interfax) - The State Duma's Budget Committee on Monday recommended that the draft Federal Budget for 2027 and the 2028-2029 planning period be adopted at its first reading.

"We voted on the first item, to adopt the bill at its first reading. The decision was carried with two abstentions," committee chairman Andrei Makarov said during the meeting. Planned expenditures are 48.8 trillion rubles and revenues 43.3 trillion rubles in 2027. For 2028 and 2029, expenditures are set at 50.9 trillion rubles and 53.9 trillion rubles, and revenues at 45.8 trillion rubles and 48.6 trillion rubles, respectively.

The budget deficit is forecast at 5.443 trillion rubles or 2.2% of GDP in 2027, which exceeds the figure of 3.186 trillion rubles or 1.2% of GDP planned by the current budget law. According to the draft, the deficit will be 5.12 trillion rubles or 1.9% of GDP in 2028, compared with the initial 3.514 trillion rubles or 1.3% of GDP.

In 2029, subject to forecasting for the first time, the planned deficit is 5.245 trillion rubles or 1.9% of GDP.

As noted in the explanatory note to the draft, budget policy will be formed according to the logic of the fiscal rules, which assume that the base oil price for the purposes of the fiscal rule is set at $50 per barrel in 2027-2030, with the achievement of a zero primary structural budget deficit by 2029.

The main characteristics of the budget are determined based on projected GDP in 2027 of 248.323 trillion rubles, 263.724 trillion rubles in 2028 and 281.674 trillion rubles in 2029, as well as inflation of up to 4% for all three years.

The Duma plans to vote on the budget on October 29.