Last week the government discussed the option of postponing the adjustment of the current budget from may to autumn, the newspaper “Kommersant” with reference to sources in the government offices. In this case, the Budget code will be made some adjustments, and changes to the financial document will be submitted to the State Duma together with the budget for next year. Thus, according to the publication, in may 2016 will have to address issues associated with the three-year budget for 2017-2019 years.
In the structures of the White house and in the Ministry of Finance reported to the edition that the debate on this issue is not yet complete. The publication indicates that the final decision to present Prime Minister Dmitry Medvedev during his speech in the State Duma on April 19.
The current budget was drawn up based on the cost of Urals oil at $50 a barrel. With the beginning of the year, according to the Finance Ministry, the average price of Russian oil amounted to $32 per barrel. Earlier in the Ministry of Finance and the Central Bank stated the need to balance the budget to avoid the economic and inflationary risks.
As earlier wrote to President Vladimir Putin on 13 January, the proposal was sent to spend the current budget sequestration. It was about a possible 10% reduction of costs. Then, according to the source , Putin reminded the government that the Cabinet once again asked him for permission to reduce, this happens too often, demanding to offer not only reduction, but also recommendations on structural measures that would overcome the most negative economic Outlook. In early February, it was reported that the government had prepared a list of “tactical” measures to reduce the budget deficit, including the seizure of proceeds of state corporations from deposits and more stringent rules of interaction with the recipients. The plan was approved by first Deputy Prime Minister Igor Shuvalov.
Last time the Russian budget suffered cuts in 2015. Authorities were forced to go to the edit budget, which was originally based on the cost of Urals oil at $96 per barrel. The amendments called for an increase in the deficit to 3.7% of GDP (2,675 trillion roubles), and the price of oil at $50 per barrel. Expected in 2015 the inflation rate, the rate which has previously identified in 5.5%, was raised to 12.2%. On average, a dollar in the bill was determined in 61.5 rubles to the dollar.