The government decided not to spend the income from oil has risen in price

The government has decided not to spend the windfall from a strengthening of oil. About it told journalists the head of Department Anton Siluanov, reports .

The issue of revenue from high oil prices was discussed at a meeting Monday, said Siluanov. “According to our estimates, at $50 per barrel, the budget will receive about 1 trillion roubles of additional revenues. And at $55 per barrel now, this would amount to 1.4 trillion rubles.” — said Siluanov.

A fiscal rule stipulating that the windfall from oil reserves, should start working in 2020. It will determine the base oil price of $40 a barrel and will limit budget expenditures so that they will have equal base income less interest expenses on debt service, explained in September, Siluanov. On Tuesday, he said that the budget rule should work in 2020. In 2018-2019, according to the Minister, should be “eyeliner, participation in the design of permanent fiscal rules”.

“In this regard, it was discussed how to proceed with the additional income and how we behave in the field of budget policies, spending commitments,” said Tuesday Siluanov. Authorities have agreed not to use the surplus “to Finance expenditures of the budget and this amount to implement reductions in the use of the Reserve Fund and the NWF (national welfare Fund. — )”, explained the Minister. The decision was supported by the President, said Siluanov.

In the budget for 2017-2019 laid the price of oil at $40. However, in recent years, it has strengthened: if at the end of November, a barrel of Brent cost more than $50, as of 19:08 GMT on Tuesday, it costs $54,39, and at the peak of this period — January 6 — the price of a barrel was $57. Prime Minister Dmitry Medvedev in November made it clear that in case of occurrence of additional incomes in the budget of the authority can direct them to additional costs. This has raised fears of experts. “These statements promise optimism about the return of consumer growth model in Russia, but they also point to the potential inflationary risks in the future,” pointed out analysts at Alfa Bank.

“Netrate oil and gas revenues make it more predictable monetary policy and allow the Central Bank to have greater manoeuvre in the OST from the point of view of reducing interest rates and ensuring stability of ruble”, — said Siluanov. He noted that the additional budget revenues will not affect the volume of borrowing on the domestic market, they will be executed at the planned level.

“According to our plans, we would question the design of fiscal rules discussed in the government in the first half of the current year and submit them to the state Duma in the spring session,” — said the Minister.