Russian budget deficit might be higher than planned in 2014 due to lower revenues - minister
MOSCOW. May 22 (Interfax) - The Russian Finance Ministry might revise the budget deficit for 2014 because of a 650-billion-ruble reduction in revenues, Finance Minister Anton Siluanov told reporters.
"In general, the forecast that was adopted [the socio-economic development forecast for 2014-2016] will lead to a decrease in budget revenues because the forecast for economic growth and imports is being lowered. Also, the ruble is stronger in comparison with the initial forecast, which will lead to a 650-billion-ruble decrease in revenues - both oil and gas and non oil and gas - next year in comparison with the plan," he said.
There is a norm that if revenues fall, spending cannot be reduced, although conditionally approved budget expenditures can be lowered. They will total approximately 350 billion rubles next year, Siluanov said.
"These funds can be reduced to provide us with a balanced budget," the finance minister said.
However, the drop in revenues will still "have a slight impact on the budget deficit," he said.
At the moment, the 2014 budget deficit is planned at 0.2% of GDP.
The Finance Ministry will unveil the key budget parameters for 2014-2016 in June.
"First the main tax policy guidelines will be adopted next week at the government, and based on this we'll calculate the budget parameters, and in June there will be a review of the main budget parameters at the government," Siluanov said. These parameters are currently "at a high degree of readiness," he added.