The media learned about the Finance Ministry’s proposal to quickly change Budget code


The Ministry of Finance is planning to quickly push through Parliament changes in some articles of the Budget code, found out “Kommersant”. The Department has formulated them in the form of amendments to the second reading of the bill to change the date of entering into the state Duma the budget the next year.

The bill to change from 1 October to 1 November this year was approved in the first reading this week. Authorities explained the need for such measures that the new state Duma that will be elected at the election on 18 September, really start working until November.

As the paper notes, the government this year abandoned the traditional spring changes of the budget law. In the end, addressing such issues as the financing of anti-crisis plan and the indexation of pensions was postponed until after the election. Prime Minister Dmitry Medvedev explained that amendments to the budget for this year will introduce in the Duma in the autumn. Thus, the Duma in November-December to approve amendments to the annual budget for this year and three years — 2017-2019.

In this situation, for the execution of the budget of the Ministry of Finance of the necessary additional powers, says “Kommersant”. According to the publication, the amendments will enable the government without the Duma to rule the budget allocation of expenditure. We are talking about redistribution in 2016 appropriation to support the economy and social sphere beyond the anticrisis Fund (65 billion rubles) and over so-called “presidential reserve”, which was formed by the freezing of pension savings (342,2 bn).

In the White house want the discretion to reallocate money within the Federal target program of Crimea and Sevastopol and on the activities of the programme of development of system GLONASS. The amendments if adopted will also allow the Finance Ministry to reallocate funds for grants to Finance the state assignment and debt service. Due to the fact that this year’s budget been drawn up on the basis of the course of 63.3 rubles for $1, the cost of servicing debt can grow.

Other changes will allow to substitute external borrowing, which in 2016 was called into question in connection with the sanctions, internal. According to the amendments, possible and return the substitute based on the situation on the debt market.

Two more amendments relate to the revenue side of the budget for this year. In the first proposed year to extend the enumeration to the Federal budget 90% instead of 75% of Central Bank profits to cover the deficit. Another until February 1, 2020 extends the distribution of revenues from management of Reserve Fund and national welfare Fund (NWF) for the current expenses budget, and savings. Now the effect of this provision is provided until 1 February 2017.