Min says Russia has no plans to adjust 2021 budget over virus

MOSCOW, Dec 29 (PRIME) -- Russia has no plans to adjust the 2021 budget because of the second onset of the coronavirus, Finance Minister Anton Siluanov told reporters on Tuesday.

"We have no plans to adjust the budget so far. We see by now that the second wave has come but we have not closed the economy like other countries, and as far as we have heard from the government, there are no such plans… This does not lead to business closing, does not lead to additional stimulation measures," Siluanov said.

He said that Russia will continue to support the economy in 2021 but not spray money from helicopters. According to Siluanov, Russia was among the leaders of economy aid, spending about 9% of the gross domestic product (GDP).

Siluanov said that spending from the National Wealth Fund is planned at 290–300 billion rubles in 2020 instead of the initially scheduled 350 billion rubles.

The outlook for budget deficit in 2020 was improved to 3.9% of GDP from 4.4% forecast in September. The unspent budget is planned at about 1 trillion rubles in 2020, 600 billion rubles will be postponed to 2021 and 400–450 billion rubles will be spent to replenish the reserve fund of the government.

Siluanov said that the Finance Ministry has no plans to raise the tax burden if budget revenue falls short of the forecast. Russia also has no plans to revise the tax agreements with large strategic partners, such as France, the U.S., Italy and China, he said.

The oil prices are not expected to remain at U.S. $50 or higher for long because hydrocarbon demand is in the risk zone, he said, adding that the government had prepared incentives for the Arctic, including on oil and gas projects, but no final decision was made.

(73.7175 rubles – U.S. $1)

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