The Ministry of Finance: measures of fiscal consolidation and deficit reduction will strengthen the ruble

The Ministry of Finance: measures of fiscal consolidation and deficit reduction will strengthen the ruble


MOSCOW, February 10. Consider for the moment the measures of the government of the Russian Federation to consolidate their budgets and reduce the Federal budget deficit needs to strengthen the ruble, reports a press-service of the Ministry of Finance.

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Previously, the Agency Reuters with reference to sources in the government said that the government can deliberately lay low ruble exchange rate for budget calculations to balance the budget at lower oil prices. According to one source Agency, the weakening of the exchange rate at 1 ruble increases budget revenues by 35-40 billion rubles.

“The Finance Ministry does not discuss and does not allow for the targeted weakening of the ruble. On the contrary, currently we are working on measures to consolidate their budgets and reduce the Federal budget deficit. Such measures, from the point of view of the Finance Ministry, will have on the course of strengthening effect”, – reports a press-service.

Budget 2016 based on the estimation from the price of Urals crude oil at $50 per barrel, so far the oil price this brand fell below $27. Budget revenues are assumed at $ 13,738 trillion roubles (17.5% of GDP), expenses – up to 16,099 trillion rubles (20.5% of GDP). The budget deficit will reach 2.36 trillion or 3% of GDP.

Finance Minister Anton Siluanov on January 13 said that if the current oil prices and in the absence of the government’s response, the deficit may grow twice. At that time, the price of Brent crude oil was at its minimum is below $28 per barrel.

Now the Ministry of Finance prepares the fiscal adjustment which should allow for a 10% reduction in spending by all ministries and agencies, with the exception of the so-called protected items. According to the Minister, the reduction of budget expenditures, will provide an opportunity to save some 512 billion. In parallel, the Ministry has prepared a package of measures to increase budget revenue. There is particularly included measures to accelerate privatization and to improve the efficiency of the companies, which are controlled by the state.