Russia might put off 2016 budget changes until fall, return to three-year budget in 2017 - minister
HELSINKI. April 14 (Interfax) - The Russian government will probably refrain from making fundamental changes to the 2016 budget law in the spring session of the State Duma, Economic Development Minister Alexei Ulyukayev said.
In established practice, revisions, usually of a technical nature, are made to the budget law in both the spring and fall sessions. Last year, the spring revisions were of a fundamental nature. This year the government was also expected to make major changes to the budget given that it is based on an oil price of $50 per barrel. But this week a government source said that the current budget law would probably remain unchanged until the fall. This decision was discussed at government meetings in April, the source said.
"I won't confirm or deny this. The chances are high for such a scenario," Ulyukayev said when asked by reporters to comment on this information.
"This is a very important decision. It seems to me that, within the context of the budget, taking into account that some budget obligations have not been carried through completely, we easily have the possibility of fulfilling obligations to budget recipients, and then see how the situation develops," Ulyukayev said.
The 2016 budget law targets revenue of 13.74 trillion rubles or 17.5% of GDP, spending of 16.1 trillion rubles or 20.5% of GDP, and a deficit of 2.36 trillion rubles or 3% of GDP. There was a deficit of 112.7 billion rubles or 0.9% in the first two months of 2016. In the first quarter, the deficit grew to 711.2 billion rubles, according to Federal Treasury data.
In 2015, due to the difficult and unpredictable financial and economic situation, the government temporarily abandoned three-year budget planning and drafted a one-year budget.
Ulyukayev said it is very likely that the government will return to a three-year budget next year.
"A fundamental decision has not been made, but it appears very likely a three-year [budget]. In other words, the decision for 2016 was a one-time decision, and if we don't make any other decision, and it appears that we are not making it, then we return to the schedule of a three-year budget," Ulyukayev said.
