Trillion from the top: Russian budget will add expensive oil

© RIA Novosti / Vladimir Traveloperator in fotoracconti RussiaTrillion from the top: Russian budget will add expensive oil© RIA Novosti / Vladimir Traveloperator the image Bank

MOSCOW, June 9 — RIA Novosti, Natalia Dembinski. The state Duma on June 9 passed in the first reading amendments to the law on the Federal budget of Russia in 2017. The main financial document of the country has laid a more positive indicators, primarily GDP in the amount of 92.9 trillion rubles, which is almost six trillion more than predicted earlier.

According to the document planned expenditures will grow up to 362 billion rubles (up to 16,603 trillion), and the expected income 1,191 trillion (up to 14,679 trillion rubles).

It is assumed that an additional trillion rubles in the budget will bring higher than expected, the price of oil.

«Income growth is associated with increasing oil and gas revenues to 719 billion rubles, driven by higher oil prices,» — said Finance Minister Anton Siluanov.

Resistant to changes in

Thus, the budget deficit will be reduced faster to 2.1% of GDP instead of the previously predicted 3.2 per cent.

While oil and gas deficit will decrease to 8.4% of GDP — the lowest level in the last nine years.

As noted Siluanov, this figure is calculated excluding revenues from oil and gas, clearly shows that now the Russian budget is highly resistant to various changes in external economic conditions.

Excessive optimism?

In may the European Bank for reconstruction and development (EBRD), the Russian economy this year will be able to show growth at the level not more than 1.2%, the IMF expects a 1.4% growth in 2017-2018.

That the budgeted rate of economic growth are too optimistic, and indicates Advisor to the General Director on macroeconomics «Opening Broker» Sergey hestanov.

«The Finance Ministry assumes that oil prices will remain quite high, but more modest economic growth at 1.4% looks much more realistic,» — says the analyst.

In may inflation in Russia in annual terms amounted to 4.1%, being just a step away from the target before the Central Bank target of 4%. Current level reached for the first time in many years. The last 20 years, inflation in Russia was 7-8% per year, and in periods of crisis the numbers were double digit.

«The pace of growth of inflation in Russia decline at a faster pace, contribute to the stability of the ruble and an adequate monetary policy of Bank of Russia», — said the Deputy Director of analytical Department of «Alpari» Anna Kokoreva.

Chestnov, however, indicates that low inflation is, of course, good, but not «strangulation» of broad sectors of the economy.

«For example, choosing between extra percentage point of lower inflation and an extra percentage point of falling exports, it is better to sacrifice inflation», — said the expert.© RIA Novosti / Natalia to Seliverstova in photosangelina scoreboard exchange rate, and a sign on the historic building of the Moscow international trading Bank on the street the Kuznetsk BridgeTrillion from the top: Russian budget will add expensive oil© RIA Novosti / Natalia to Seliverstova in photosangelina scoreboard exchange rate, and a sign on the historic building of the Moscow international trading Bank on the street the Kuznetsk Bridge
Acceptable ruble

The average rate of the ruble in the budget, will amount to 64.2 rubles per dollar. Analysts point out: at current oil prices for most of the major Russian exporters is the minimum necessary rate.

«The weakening of the ruble to the level of 64 rubles per dollar will not cause a radical increase in prices in the shops. This is an acceptable level,» says hestanov.

In his opinion, the ruble at the level 64-68 rubles to the dollar would be for the Russian economy even more favourable not only for exporters but also for Russian producers that actually compete with the imports.

Source

Be the first to comment on "Trillion from the top: Russian budget will add expensive oil"

Leave a comment

Your email address will not be published.


*