Media reported about the possibility of adopting an annual budget for 2017

The draft budget for 2017, the government may prepare as an annual, has told to the newspaper “Vedomosti” three Federal officials of different departments. The representative of the Ministry of Finance has declared to the edition that such a discussion there and the Ministry is working on a three-year draft budget. However, the official financial-economic bloc said that officially it it is not, but the theme sounded at the meetings.

As explained by one of the interlocutors of the newspaper, to a three-year budget was realistic, it should be taken into account decisions on taxes, even if they are taken after 2018, pension system, and now they are not and there is no certainty that they will be adopted before the end of the year. A third official added that to mark up the budget for three years prevented the elections.

A senior official told the newspaper that until now discussed it three-year budget, but recently had the idea to write the annual budget for another year. According to him, this is necessary because of the very great uncertainty: it is difficult to plan the budget for three years because it will be executed outside of the election cycle, it is unknown what decisions the income and expenditure will be accepted.

Russian legislation provides for the adoption of the budget for three years. September 30, 2015, President Vladimir Putin signed a law providing for the development and adoption of an annual budget for 2016. The act also provides for the abolition of fiscal rules in 2016 — the requirements for identifying the total expenditure budget for the next financial year and planning period.

This decision was taken “in connection with the projected reduction of total income and preparation of a draft Federal budget for 2016”. It was passed by the Parliament on 25 September and 30 September, approved by the Federation Council.

In the explanatory Memorandum, the government stated that the bill on the annual budget prepared in connection with the high volatility in the financial and commodities markets, increasing risks to the reliability of indicators of the forecast socially-economic development of the Russian Federation and the realism of the calculation of income and expenditures of the Federal budget.”