Finance Ministry expects average annual price of oil at $41 per barrel in 2016
MOSCOW. Oct 21 (Interfax) - The average annual price of oil in 2016 is expected to be $41 per barrel, Finance Minister Anton Siluanov said in the State Duma in conjunction with the first reading of a bill containing amendments to the 2016 budget.
The budget deficit in 2016 is forecast at 3.7% of GDP, he said.
"We most likely can already speak about the parameters, on the basis of which we made adjustments to the 2016 budget. We estimated GDP still with a 0.6% drop this year [...]. The price for oil, which significantly impacts the revenue portion of the budget, we estimated from the calculation of $41 per barrel. This approximately corresponds with today's price parameters," the finance minister said.
Based on these parameters Russian budget revenue will fall by 369.9 billion rubles, spending will rise by 304 billion rubles. The budget deficit is expected at 3.7% of GDP. The non-oil and gas deficit will amount to 9.4% of GDP, which is 1.3 percentage points lower than initially planned in the budget, the minister said.
The share of non-oil and gas revenue in total revenue is rising to 64% from the planned 56%.
