Sergei Belev, Head of the Fiscal Policy Lab commented on the draft federal budget of the Russian Federation for 2020-2022 to the AiF daily.
The Ministry of Finance expects the reduction of the inflation rate to 3% with a simultaneous 1.9% economic growth next year, the AIF daily reports.  The federal budget expenditures will grow by the same 1.9% and, probably, even more: if during 2020 the revenues exceed the planned targets, the expenditure side of the budget will be additionally increased, too. However, the new budget has fewer chances of getting additional revenues than a short time ago.    

The government forecasts that growth in foreign currency revenues from exports of oil and gas will slow down. So, it is planned that in 2020 the Federal Treasury will gain Rb 20.4 trillion and spend Rb 19.5 trillion. “The main goal is to stimulate economic growth with the stability of the budget system maintained”, Sergei Belev draws attention to the approach of the Ministry of Finance.

Also, there are questions as regards the amount at which the financial aid, which is expected to be allocated out of the federal budget in terms of transfers to regional budgets, is estimated. On one side, it is more than was earlier planned for 2020, while on the other side, less than it was actually equal to in 2019. “Without additional aid from the federal center, it will be difficult for regions to deal with the issues in education and healthcare they are responsible for”, believes Sergei Belev.