Siluanov has lowered its forecast for the budget deficit in 2016

The Federal budget deficit by 2016 could range from 3.5% to 3.7% of GDP, said Russian Finance Minister Anton Siluanov. According to him, the increase in the budget deficit associated with the clarification of certain expenditure items.

“There will be a number of amendments that were proposed by ministries and departments in terms of redistribution of resources from one position to other, more technical — about 25-30 billion rubles,” — said the Minister (quoted by “Interfax”). In July 2016, Siluanov predicted that the Federal budget deficit for the year will amount to 3.3% of GDP.

The Finance Minister noted that the exact size of the deficit will depend on the transaction structure for the privatization of state-owned shares “Bashneft”. “If it is structured through “Rosneft” and “Rosneftegaz” — this will reduce the budget deficit, because it is through income will come to us. If it is structured like a business transaction, not associated with “Rosneft” — so it will just be a source of deficit financing,” — said Siluanov.

Expenditures Reserve Fund to cover the budget deficit, according to the Minister, will not change, remaining at 2.1 trillion rubles.

Degraded head of the Ministry of Finance forecast budget deficit almost coincided with the Bank of Russia (3,6%), but remained more optimistic than the forecasts of experts. So, according to analysts, the international rating Agency Fitch, in 2016, the Russian budget deficit will be 3.9%.

According to the law on the Federal budget for 2016, the deficit should be only 3%.

At the end of August 2016, it was reported that the Finance Ministry proposes to discuss several ways to increase revenues, including through higher taxes on profits, property tax, VAT, personal income tax and insurance contributions.

The head of audit chamber Tatyana Golikova noted that the Federal budget deficit could be reduced by 1 trillion rubles, provided more efficient use of funds.