The draft budget for the next three years provides for the entry into force in 2025 of the budget rules, which provide for the primary balance of the budget. This means that revenues will be equal to expenditures, excluding the cost of servicing the public debt. According to the project, the budget deficit will be reduced from 2% of GDP in 2023 to 0.7% in 2025, and the deficit, excluding oil and gas, from 7.9% in 2023 to 5.7% in 2025, said Finance Minister Anton Siluanov at a government meeting. He stressed that in order to achieve such parameters, “relevant tax innovations” were prepared and “measures were taken to prioritize expenses.”
“The tax proposals take into account the fair withdrawal of part of the natural resource rent, which has increased as a result of changes in world commodity prices. What are the key offers. Raising export duties on pipeline gas, withdrawing additional income from liquefied natural gas producers, introducing an export duty on fertilizers and thermal coal if prices for these products remain high, increasing taxation of the oil industry by maintaining the damper mechanism refined this year and adjusting the calculation of production tax minerals, ”the press service of the Siluanov government quotes.
He noted that other tax innovations are also envisaged, which have already been submitted to the government and are being prepared for submission to the State Duma.
Expenses, according to Siluanov, for the planning period were determined in accordance with the priorities outlined in the messages of the President of the Russian Federation and government decisions. This is the full provision of social measures to support families with children, pensioners and state employees. The payments of the mother’s capital, the operation of the preferential mortgage program, the repair of schools and the creation of new educational places, and the renewal of medical institutions will also continue. In addition, the creation of seven world-class campuses will be funded. Significant funds have been allocated to support the industry, the road five-year plan is also fully provided with funding sources, in addition, money is provided for a new project for the development of ground electric transport and for a new program for the modernization of housing and communal services, the head of the Ministry of Finance emphasized.
“Next year, subsidies for equalizing budgetary security, which creates a revenue base for regions that need state support, will be increased by 8.5%. The provision of infrastructure loans and measures to restructure loans previously provided from the federal budget will continue,” Siluanov said.
Speaking about the sources of financing the deficit, he noted that the Ministry of Finance will focus on domestic borrowing. Next year it is planned to place government bonds more actively. The ceiling on borrowing for the next two years is planned to be adjusted in such a way as to minimize the use of the NWF, and ideally refuse to use the fund’s funds for borrowing purposes, Siluanov added.