The investment forum “Sochi-2016”: how to cut the budget pie, which is not

The investment forum “Sochi-2016”: how to cut the budget pie, which is not

Moscow. September 30. Business Breakfast Sberbank in the framework of the Sochi forum was held under the guise of “Budget: how to cut properly”. Topics of discussion asked German Gref to such events in Davos, St. Petersburg and Sochi, traditionally provoke the participants into a Frank discussion. In this case, provocative turned out the name itself – the speakers in the first place wondered what exactly to cut?


Finance Minister Anton Siluanov, whose question “how to divide the pie” in the post sounds unacceptable, the topic of the Breakfast is actually bypassed, and devote only a cheerless opening joke: “the Cake has become more diet”. Then the Minister spoke mostly about how the pie will decrease.

According to Siluanov, in the current situation “absolutely impossible” to do without the consolidation of the budget of the Russian Federation, otherwise there will be a significant increase in the budget deficit. He recalled that government approved the main parameters of the Russian budget for 2017-2019 imply a deficit reduction of 1 percentage point of GDP per year, in 2019 it was about 1% of GDP.

“Many people say – there will be 4-5%, we have little debt, increase borrowing. You have to understand that the budget deficit is the same taxes, we are withdrawn from the economy, to take money from banks, the financial companies that would work in the economy, which would go on lending to development projects, these funds are seized through the budget. The same effect around and through taxes. Therefore, our task is to bring the budget in line with the capacity of the economy to the budget has been balanced so that its deficiency does not affect inflation, interest rates on the redistributive processes in economy”, – said the Minister.

He reiterated the Central thesis of the Ministry of Finance last week: a significant increase in taxes in the next three years will not. So, you better gather up what is already there.

“The main objectives in this part we see in improving tax collection. (…) In 2017, our goal is the improvement of the administration of insurance and customs fees and taxes. It is through improving the administration and implementation of legislation in the field of taxes all the stakeholders we will work to increase revenues. Any other major changes compared to the current level of tax exemptions is not planned”, – said Siluanov.

The Minister recalled that this year has adopted a number of measures to improve tax collection. “The tax service has worked well in terms of increasing the collection of VAT. This year we also worked with the tax service and the Federal alcohol market regulatory service to improve the collection of alcohol excise duties, grew to almost 30%,” – said the head of the Ministry of Finance.

May decrees forever

The head of the Duma budget Committee and the previous, likely, new convocation Andrey Makarov, fending off a replica of German Gref and Alexei Kudrin, called to sympathize with not only the Minister of Finance and the governors, but also to the population. A “budget pie”, he said, without a sufficient quantity of flour and other ingredients, it will be difficult not only to cut, but is. Developing this idea, the MP has sent a critical message of the Ministry, whose head, Alexei Ulyukayev, as noted by Makarov, contrary to tradition the Sberbank Breakfast was not involved.

Ex-Finance Minister Alexei Kudrin to extend the sympathy of his successor on the population was not: does not allow the situation in the economy. The head of the Board of the Center for strategic research, Chairman of the Economic Council under the President, recently regained its full membership of the budget process, called the stretch of time the implementation of “may decrees” of the President in terms of growth of expenditures on wages.

“This dangerous maneuver (escalating salary costs in the regions price in the 500-800 billion rubles) I could’ve done a longer period of implementation of decrees was postponed to more optimally perform in a compressed budget these obligations. These goals should be left for the longer period, but now, given the fact that the economy is falling and we have revenue growth will not be as fast, you need to increase the salary only to the extent of increase spending,” Kudrin said.

Otherwise, he said, “we will create a new competition (the budget sector with the real sector cost of labour.”

To increase in the future, “the budget pie”, according to Kudrin, will allow the maneuver in favor of the productive sectors. “Our proposal is a maneuver in the direction of increasing productive expenditures by at least 1 percentage point of GDP increase spending on education, health and infrastructure in 3-5 years”, – said Kudrin.

By 2024, these expenditures need to increase at 3 percentage points of GDP, says ex-Minister. “It will be another brand new trend that we will create”, – he said.