The government submitted to the state Duma a draft law on budget for 2016

MOSCOW, October 23. The government submitted to the state Duma a draft law on budget for 2016, as well as main directions of tax policy, the main directions of budget policy and basic parameters of the forecast socio-economic development for the next three years, reports correspondent.

  • The budget for 2016 is fundamentally different from a similar document that was drafted in 2014
  • Forecast revenues of the Federal budget is formed based on the changes of tax and customs legislation
  • The KPRF deputies criticized the bill
  • Faction “Fair Russia” is preparing an alternative
  • LDPR consider the budget”as extraordinary”

The budget for 2016 is fundamentally different from a similar document that was drafted in 2014. Next year, the government draws up the annual budget, not reviewing the forecast 2017-2018. Also for next year cancelled the effect of budget rules, according to which the maximum level of expenditure shall be determined on the basis of the average for the previous three years the price of oil.

The draft law on the Federal budget would be submitted to the Duma Council on 24 October, told journalists the Chairman of the Committee on budget and taxes Andrey Makarov.

“In accordance with the Budget code of our Committee are given a day to examine the completeness of documents to be submitted together with the budget act. Therefore, the budget Committee will start working immediately, right now, that tomorrow we will be able to make it to the Council of the Duma”, – he said.

According to Makarov, the text of the budget bill for 2016 is 7624 pages and weighs approximately 7 kg.

According to the document, budget revenues next year will amount to 16 trillion 098,7 billion rubles, expenses – 13 trillion 738,5 billion rubles, the deficit – $ 2 trillion to 360.2 billion or 3% of GDP.

Forecast revenues of the Federal budget is formed based on the changes of tax and customs legislation. In particular, take into account decisions about the conservation in 2016, the rates of export customs duties on oil at 2015 (42%), and changing the tax rates on extraction of minerals for gas and gas condensate for taxpayers who are owners of the Unified gas supply system. Taken into account the increased rates of utilization fee for wheeled vehicles and chassis by 65%, the introduction of utilization fee in respect of self-propelled machinery and its trailers.

In addition, the revenue forecast for 2016 reflecting the additional revenues from management of Reserve Fund and national welfare Fund in the Federal budget and increase to 90% profit share of the Bank of Russia, payable to the state Treasury.

As the main source of financing of deficit of the Federal budget was the Reserve Fund. To cover the deficit from the Fund in 2016 it is planned to spend 2,137 trillion.

Hoteistitania traditionally been the main source of financing the budget deficit, however their chance will be significantly limited: in the domestic financial market due to declining demand from the financial sector and the risks of deteriorating terms of borrowing; the external debt markets – due to the ongoing sanctions against Russia.

In 2016 a “clean” raising funds in domestic and foreign financial markets is planned in the amount 393,2 billion rubles, while the volume of “clean” state internal borrowings of the Russian Federation will amount of 300.0 billion rubles, and the possibility of a “clean” raise funds on the international capital market is estimated at $ 1.5 billion.

An important feature of the draft Federal budget for 2016 is the budget allocations not only in the context of state programmes and their subprogrammes, but also on major activities of state programs.

As for the forecast for the years 2016-2018, in the baseline scenario next year GDP growth at 0.7%, inflation is projected at 6.4%, while the average annual oil price of 50 dollars per barrel. The average annual exchange rate used in the budget for 2016, is projected to be 63.3%.

The Communist party deputies criticized the draft budget for 2016

The KPRF deputies criticized the draft budget for 2016, which was introduced to the state Duma.

“We almost entirely with the budget don’t agree. To vote for it fraction natural, will not” – said the Deputy Ivan nikitchuk. “It’s all cut, I even cut defense money. 14% cut in defense spending while we are fighting in Syria and, seemingly, need additional costs. Social policy 8% cut”, he added.

According to him, the government shows lack of professionalism and “can’t manage the economy”. “That’s right, it was not the first budget to consider, and first to raise the question about resignation of the government”, – said the Communist. According to him, the Cabinet of Ministers unreasonably complains about lack of funds.

“Actually in Russia a lot of money. They are funds that are not used in American securities, a burden and rather support the American economy than ours. What we are looking for oil and gas? Like they say that this national treasure, but the extracted oil and gas to dispose of not the state but private companies that allegedly state,” said nikitchuk.

He also stressed that in addition to fully transfer to the state ownership of all extractive companies, additional revenue would bring long offered the Communists the law on a progressive scale of taxation. “Its management would give us about two trillions roubles of additional incomes,” he added.

In turn first Deputy Chairman of state Duma Committee on budget and taxes Victor Kolomeitsev (CPRF) also pointed to the fact that many budget cut compared to last year. “We believe that we should raise spending on education and healthcare. For example, according to who, about 5-7% of GDP in the budget should be spent on health. And we have a 3.5% going – that is, almost twice less. Therefore, it is necessary to increase,” said Kolomeitsev.

In his opinion, it is also necessary in 2016 to increase the support of the Federation. “The budget is formed so that for some items there is a reduction even in comparison with year 2015 or 2015, excluding inflation, which is over 12% this year,” he added.

In turn, first Deputy head of the Communist party faction Sergei Reshulsky called on each of the party members to prepare their comments on the draft budget and convey them to the leader of the CPRF Gennady Zyuganov until October 30. “13 July, if nothing has changed, will be considered the draft budget in the first reading, so Gennady Andreevich should have the time and opportunity to summarize your estimates, proposals,” said Reshulsky, referring to the Communists at the faction meeting on Thursday.

Deputies-spravorossy are preparing an alternative budget

Faction “Fair Russia” will not support the draft Federal budget for 2016 and prepare your alternative. This was announced by first Deputy head of the faction of the Duma of just Russia Mikhail Yemelyanov.

“We are going against the government’s budget. We are not satisfied with the approaches of the Cabinet of Ministers”, – said Emelyanov. The main complaint, he said, that “all crisis the consequence proposed to solve at the expense of the middle class and the poor, while leaving intact the elite and the upper class”. “The government is not interested in finding new revenues while cutting social spending. And such sources of income – in particular, the adoption of laws on a progressive scale of taxation , luxury tax, to abolish the VAT refund exporters”, – has explained spravoross.

Yemelyanov also said that the deputies of the faction “Fair Russia” intend to develop an alternative concept of the budget for the next year “with numbers and calculations”.

The liberal Democrats will not support the draft budget

LDPR faction will not support the government submitted to the state Duma a draft budget for 2016. This was stated by the Duma, the liberal Democrat, first Deputy Chairman of the house Committee on budget and taxes Sergey Katasonov.

“Faction of the liberal democratic party cannot support the budget in that form,” he said. According to Katasonova, the liberal Democrats consider it “extraordinary”. “The draft budget 2016 – budget expectations. We live in the hope that world oil prices will again come to a hundred dollars per barrel,” he said.

The expression Kutasova set up by the government options – “this manual, are living the situation, it is impossible to foresee what will be the income and, respectively, what would be the costs”.

While the Deputy head of the budget Committee indicated that, in rouble terms, real income fell back to the level of 90-ies. “The deflation that occurred, led to the fact that the population spends on foreign goods in real terms 1.5 times. The situation of consumer demand compression is tremendous. When the government gives credit for something that did not abolish the indexation of pensions to salaries is a profanation!”, – he stressed.

The Deputy noted that even if there are fulfilled all social obligations, “to buy, we will be able to 50 % lower than two years earlier”.
Katasonov believes that “the sole engine of the economy can only be a consumer demand”. “And the government does not understand that, pinching him, we are no prospects of our economy,” he concluded.