Budget revenue losses could be compensated by additional transfers from higher wages

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Budget revenue losses could be compensated by additional transfers from higher wages - Putin

MOSCOW. July 7 (Interfax) - Russian Prime Minister Vladimir Putin is proposing to compensate for budget revenue shortfalls, caused by a decrease on the insurance payment rate from 34% to 30%, by introducing an additional rate on larger wages above 512,000 rubles.

"Lost revenue [from the decrease in insurance rates] is considerable; this comes to 460 billion rubles. In order to cover at least a portion of budget shortfalls, the proposal has been made to introduce additional insurance payments to social funds on wages above 512,000 rubles," Putin said at a government meeting on Thursday.

He said that rate on transfers might reach up to 10% "The total [rate] for these transfers is up to 10%. Let's discuss this further," Putin said.