Medvedev will hold a meeting on the adjustment budget of 2016 and other economic issues

Medvedev will hold a meeting on the adjustment budget of 2016 and other economic issues

MOSCOW, January 15. Prime Minister Dmitry Medvedev will hold a meeting where will be discussed the issues of execution of the Federal budget for 2016. About it reports a press-service of the government.

Also, the meeting will consider the program of support of vehicle engineering, automotive industry and light industry in 2016.

The event will be attended by first Deputy Prime Minister Igor Shuvalov, Deputy Prime Ministers Olga Golodets, Arkady Dvorkovich, Dmitry Kozak, Dmitry Rogozin, presidential aide Andrei Belousov, Finance Minister Anton Siluanov, Minister of industry and trade Denis Manturov, the Chairman of the Central Bank Elvira Nabiullina.

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Earlier, speaking at the Gaidar forum in Moscow, Medvedev has not excluded that will require adjustment to the budget, if world oil prices will continue to decline. In addition, he called for “prepare for the worst-case scenario, as is done in other countries”. According to him, for the government the main question now “is the most effective form of optimization of the budget”.

However, he drew attention that the basic principle of Russian policy remains: “to live within our means”, including by reducing spending and reducing spending on the government apparatus, privatization of part of state assets.

Finance Minister Anton Siluanov at the forum said that the ministries and agencies until mid-January must submit to the Ministry of Finance their proposals for 10% reduction of their costs in 2016. All, according to him, therefore, the Russian budget could save more than 500 billion rubles. The Ministry of Finance intends to adjust the budget of the current year to the end of the first quarter. And it’s not only about optimizing costs, but also increase revenues, Siluanov said.

Approved in December the Federal budget for the current year suggests a deficit within 3% of GDP (with an average annual oil price of $50 per barrel). However the other day the head of the MAYOR Alexei Ulyukayev said that the government in the stress scenario considering the option of increasing the budget deficit to 7-7,5% to Russia’s GDP in 2016. This scenario is based on the average price of oil at $25 per barrel.

The head of the Ministry of Finance Anton Siluanov said that the amendments to the budget can be laid average price of oil of $40 per barrel.

The enacted budget for 2016 laid out with revenues of $ 13,738 trillion (17.5 percent of GDP) and expenditure 16,099 trillion rubles (20.5% of GDP). The budget deficit will reach 2.36 trillion, or 3% of GDP.

The budget is based on the inflation rate not exceeding 6.4 per cent (December 2016 to December 2015). The GDP is expected to be $ 78 trillion 673 billion. The normative size of the Reserve Fund is planned in the amount of 5 trillion 507 billion.