PM sees Russia’s budget deficit at 1.5 tln rbl in 2018

MOSCOW, Jun 29 (PRIME) -- Russia’s budget deficit will amount to 1.5 trillion rubles in 2018, Prime Minister Dmitry Medvedev said at a government meeting on Thursday.

“We have planned (budget) revenue at 14.7 trillion rubles and spending at 16.2 trillion rubles, which corresponds to a 1.5 trillion ruble deficit. I must remind you that last year budget had an almost 3 trillion ruble deficit, so the (new) figure is more acceptable,” he said, adding that the Finance Ministry will continue working on decreasing deficit.

Medvedev said that the government will meet to plan budget for the next three years and send a draft to the State Duma, the Russian parliament’s lower house, in autumn. He also reiterated that support of key agriculture, transportation, energy, education, health and housing should be implied by the budget.

The prime minister added that the government hopes that positive economic trends will become more consistent in late 2017.

“We expect a 2% gross domestic product growth according to the estimates of the Economic Development Ministry this year… it is evident, that we will have growth,” he said.

Medvedev also said that although there are some optimistic estimates, Russia’s macroeconomic forecast has to provide a safety cushion as the country’s economy will be affected by negative factors, including prolongation of anti-Russian sanctions and restricted access to the capital and technology markets in the coming years.

“We base our budget formation work on the fact that stability and balance of the budget system must be maintained in any situation on the crude market and any other external events,” Medvedev said.

The official said that the government needs to create additional reserves in order to use them when necessary as well as to analyze the use of already allocated funds.

Medvedev also said that retirement payments except pensions to working seniors will be adjusted for inflation in 2018 and that the maternity capital will be adjusted in 2020.

The Russian government provides about 450,000 rubles of target subsidies to women after the birth of a second child. The aid can be spent on house acquisition, future education of children, a pension for the mother or on recovery of a disabled child.

(59.5415 rubles – U.S. $1)

End