Putin signs law to share fuel excise windfall equally between highway funds, budget
MOSCOW. May 23 (Interfax) - Russian President Vladimir Putin has signed a law that will distribute additional revenue from hiking petroleum product excise equally between the federal budget and regional highway funds, according to a statement posted on the offocial legal information website.
The State Duma passed the law on May 13 and the Federation Council passed it on May 18.
From June 1, 2016, 12% of the revenue from petroleum product excises will be paid into the federal budget and 88% instead of 100% into the regional budgets. This will enable any windfall on those excises to be shared equally between the federal budget and the regional highway funds.
President Putin, during his direct line with Russian citizens in April, proposed keeping half of the funds received from the excise hike on fuel in regional road funds.
Putin said that starting on April 1, the excises on fuel rose by about 2 rubles. "The Finance Ministry by virtue of difficulties with the budget, we are planning to put these 2 rubles into the federal budget. But I think that as a minimum, one ruble needs to remain in road funds. This is about 40 billion rubles. I hope that this will influence the quality of roads," he said.
These funds, that are being allocated, should be marked and sent strictly towards the determined goals.