The budget deficit-2017 can be less than 2% of GDP

© RIA Novosti / Vladimir Traveloperator in photobacteria banknotes and coins of Russia. Archival photoThe budget deficit-2017 can be less than 2% of GDP© RIA Novosti / Vladimir Traveloperator the image Bank

The budget deficit in 2017 can be less than 2% of GDP with the extension of the agreement to reduce oil production, said the head of the Ministry Maxim Oreshkin.

The Russian government last Thursday discussed amendments to the law on the Federal budget for 2017, prepared by the Ministry of Finance. The Ministry, expecting 1,144 trillion rubles of additional income proposed to increase spending only 315 billion rubles. The budget deficit eventually will be reduced to 829 billion rubles — up to 1,924 trillion rubles, or 2.1% of GDP. The present law foresees a deficit of 3.2% of GDP.

«This (extension of the Vienna agreement — ed.) means one of those moments that the budget deficit may be below 2% to be. If oil goes higher, and the revenues from oil and gas will be higher,» said Oreshkin journalists.

OPEC on 30 November last year in Vienna agreed to reduce its production by 1.2 million barrels a day from October level. Eleven non-OPEC countries, 10 Dec agreed to reduce its production a total of 558 thousand barrels per day, including RF — 300 thousand.

The agreement was concluded for the first half of 2017 with possibility of extension. The question of the extension will be considered at the Ministerial meeting of the monitoring Committee of 24 may, and on the meeting of OPEC and countries that are not members of the cartel, may 25.