The Russian State Duma, or lower house of parliament, on Tuesday passed in the first reading amendments to the 2018 federal budget, raising its surplus to 2.1 percent of gross domestic product (GDP) from the previous 0.5 percent on higher-than-expected oil and gas prices and higher exports.
Revenue is expected to rise to 18.948 trillion rubles (280.2 billion U.S. dollars), up from the previously forecast 17.073 trillion, and expenses is set to rise to 16.809 trillion rubles, compared to 16.591 trillion, according to an explanatory note by the Duma budget and taxes committee.
Therefore, the surplus is now estimated at 2.139 trillion rubles instead of 481.7 billion.
"Taking into account the above mentioned trends, the forecast for oil prices for 2018 was improved to 69.6 dollars per barrel from 61.4 dollars per barrel," the note said.
According to the note, Russia's oil exports this year are now forecast at 255.7 million tons, up from expected 249.3 million tons, and those of natural gas -- at 216.2 billion cubic meters (BCM), compared to the previous estimate of 200.6 BCM.
At the same time the bill lowered its GDP growth expectations for this year to 1.8 percent from previous 2.1 percent "due to the announcement of the introduction of additional sanctions measures, increased volatility in financial markets, as well as accelerated capital outflows and rising yields of debt securities."
The bill also revised the average exchange rate of the ruble to 61.7 per dollar from 58.6 rubles in the current budget.
The rate of inflation for this year was raised to 3.4 percent from 2.8 percent previously on the lower ruble rate and an increase in food prices and animal fodder caused by a low global grain crop forecast and the planned increase in the value added tax (VAT) from the next year to 20 percent from 18 percent now.
The increased budget surplus will allow for more support to various Russian regions in order to ensure the balance of their budgets and to raise the wages of civil servants, Duma speaker Vyatcheslav Volodin said in a statement.
The bill on the budget amendments will have to pass two more readings in the Duma before being endorsed by the Federation Council upper house and signed into law by Russian President Vladimir Putin.
Revenue is expected to rise to 18.948 trillion rubles (280.2 billion U.S. dollars), up from the previously forecast 17.073 trillion, and expenses is set to rise to 16.809 trillion rubles, compared to 16.591 trillion, according to an explanatory note by the Duma budget and taxes committee.
Therefore, the surplus is now estimated at 2.139 trillion rubles instead of 481.7 billion.
"Taking into account the above mentioned trends, the forecast for oil prices for 2018 was improved to 69.6 dollars per barrel from 61.4 dollars per barrel," the note said.
According to the note, Russia's oil exports this year are now forecast at 255.7 million tons, up from expected 249.3 million tons, and those of natural gas -- at 216.2 billion cubic meters (BCM), compared to the previous estimate of 200.6 BCM.
At the same time the bill lowered its GDP growth expectations for this year to 1.8 percent from previous 2.1 percent "due to the announcement of the introduction of additional sanctions measures, increased volatility in financial markets, as well as accelerated capital outflows and rising yields of debt securities."
The bill also revised the average exchange rate of the ruble to 61.7 per dollar from 58.6 rubles in the current budget.
The rate of inflation for this year was raised to 3.4 percent from 2.8 percent previously on the lower ruble rate and an increase in food prices and animal fodder caused by a low global grain crop forecast and the planned increase in the value added tax (VAT) from the next year to 20 percent from 18 percent now.
The increased budget surplus will allow for more support to various Russian regions in order to ensure the balance of their budgets and to raise the wages of civil servants, Duma speaker Vyatcheslav Volodin said in a statement.
The bill on the budget amendments will have to pass two more readings in the Duma before being endorsed by the Federation Council upper house and signed into law by Russian President Vladimir Putin.
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