Medvedev: movement in oil prices poses risks for the budget

Medvedev: movement in oil prices poses risks for the budget


In the Federal budget the average annual oil price in 50 dollars for barrel. At the moment, “the dramatic movement in oil prices” creates very serious risks to the execution of the budget, said Prime Minister Dmitry Medvedev.

SLIDES, 15 Jan. Dramatic movement in oil prices in recent days pose serious risks for implementation of the budget of the Russian Federation, said Prime Minister Dmitry Medvedev at meeting on execution of the budget for 2016.

The head of government reminded that in the Federal budget the average annual oil price of $ 50 per barrel, so that when typeset in the draft budget the prices were about the same, and this is the forecast looked quite realistic.

“But the dramatic movement in oil prices that we see in recent weeks, especially in the last days, creates very serious risks for the execution of the budget,” Medvedev said.

The current law on the Federal budget of the Russian Federation for 2016 provides for income 13,738 trillion rubles, expenses — 16,099 trillion rubles, the deficit, respectively, at 2.36 trillion rubles, or 3% of forecasted GDP. However, the document was prepared based on the average annual oil price in 50 dollars per barrel, while the current quotes are at the level of 30 dollars per barrel.

The government has already taken a decision on optimization of the budget for 2016, the Ministry must prepare and submit to the Finance Ministry its proposals on the reduction of costs by 10%. And the proposal to adjust the budget of the Russian Federation for 2016 should be ready by the end of the first quarter.