20 Sep 2022 16:28

Russian budget planned with deficits of 2%, 1.4%, 0.7% of GDP in 2023-2025 - Mishustin

MOSCOW. Sept 20 (Interfax) - Russia is projected to have a federal budget deficit of 2% of GDP in 2023 followed by 1.4% of GDP in 2024 and 0.7% of GDP in 2025, which will be financed predominantly through loans, Russian Prime Minister Mikhail Mishustin said when opening a meeting of the government commission on budget projections for the next fiscal year and planning period.

"We assess budget revenue for next year at around 26 trillion rubles, and proposals for additional revenue have already been taken into account in that, which have been worked through in line with the instruction of the head of state. Expenditures are around 29 trillion rubles, and accordingly, the budget deficit will be 2% of GDP, or 3 trillion rubles. We plan to close it predominantly at the expense of loans," Mishustin said.

This approach will allow not spending funds of the National Wealth Fund and will ensure an acceptable level of government debt, he said.

The budget deficit will gradually decrease from 2% of GDP in 2023 to 1.4% of GDP in 2024 and 0.7% of GDP in 2025, Mishustin said.

"We're planning budget policy in the logic of the fiscal rule. This will help to protect our economy from external risks. At the same time, we anticipate a transitional period when expenditures will be higher than 2.9 trillion rubles and 1.6 rubles in 2023 and 2024 correspondingly," he said.

According to Mishustin, this "will allow provision of more active support for the economy during the period of adaptation and restructuring of economic ties on the one hand, and on the other hand, it will promote stable development and structural changes in the medium term and preserve confidence in the macroeconomic policy carried out by the government."