Minister: Budget to fight COVID-19 effects totals 2.8% of GDP

MOSCOW, Apr 16 (PRIME) – Russia has allocated 2.8% of its budget to counter the COVID-19 and its effects, Finance Minister Anton Siluanov told reporters on Thursday.

He said that the current priorities are to hold down the spread of coronavirus and mitigate the negative fallout.

"An additional financial resource -- direct budget spending, reduction of the tax burden, tax grace periods, and guarantee support -- has been allocated to solution of these tasks, with a total volume of about 2.8% of the GDP," Siluanov said.

Direct allocations to small and medium-sized business to pay wages will exceed 80 billion rubles and 970,000 organizations and individual entrepreneurs are to receive them.

The ministry will allocate about 2 trillion rubles from the National Wealth Fund in support of the economy in 2020, if the oil prices remain at U.S. $20 per barrel.

The measures of fiscal support of people and business in all areas amount to 6.5% of the GDP. "Measures of an unprecedented scale amount to support population and some industries and spheres of activities are envisaged. The total amount of fiscal support can be estimated at 6.5% of the GDP," Siluanov said.

The budget loss of tax and other non-oil and gas revenue can amount to more than 1 trillion rubles in 2020, he said.

(73.7145 – U.S. $1)

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