The Ministry of Finance has developed a concept of new budget rules

The Ministry of Finance has prepared proposals for new budget rules, said the HEAD of the department, Anton Siluanov. According to him, the challenge is

The Ministry of Finance has proposals for new budget rules, they are being worked out, Finance Minister Anton Siluanov told reporters.

“Our task as the Ministry of Finance is to determine the volume of oil and gas revenues in such a way as to minimize dependence on external conditions,” the minister said, RBC correspondent reports.

According to Siluanov, in the near future, the National Wealth Fund (NWF) will become the main source of financing expenses, along with income. This picture will be relevant even if the Ministry of Finance returns to the domestic borrowing market in 2023–2024. This year, the Ministry of Finance does not plan to borrow on the market, Siluanov said earlier. For 2022, the old budget rule, which assumed the accumulation of foreign currency in the NWF from additional oil and gas revenues, was suspended, and RBC wrote that it would be impossible to return to it under the conditions of sanctions and freezing of foreign exchange reserves.

Sanctions make it impossible for the fiscal rule to work Economics

Siluanov said that the Ministry of Finance is considering the possibility of completely abandoning the cut-off price for oil ($40 per barrel in 2017 prices, $44.2 in 2022), above which oil and gas revenues were sent to the NWF. “It is possible to fix a certain amount of forecast oil and gas revenues, which would be formed based on the data for the last three years – the average volume of oil and gas revenues [budget]. In order to minimize the impact of volatility in production volumes, prices and exchange rates,” the minister explained.

If oil and gas revenues exceed the planned volume, the Ministry of Finance will spend less from the NWF; if oil and gas revenues are less than the target volume, then more will be spent from the NWF, Siluanov said. In order for the NWF not to be exhausted, limits on the amount of spending will also be needed. Budgetary commitments should correspond to budgetary possibilities, the minister explained. It will also be possible to replenish the FNB in ​​rubles, he added.

According to him, this year it is planned to adjust the budget promptly through the parliamentary commission, without making amendments through the State Duma. It is planned to prepare the budget for the new three-year cycle already "according to specified principles," Siluanov said. However, for the new budget rules to fully come into force, a transitional period will be needed, he pointed out.

Read on RBC Pro Pro You won't be able to wait:how Russian business will change in two or three years Forecasts Pro Not a word about dissatisfaction:how to deal with negative emotions in a team Research Pro 6 skills important for a career,that you will receive during your job search Articles Pro Financial Heroin:why Lehman Brothers failed to save from collapse Articles Pro Foreign companies refuse to fulfill their obligations.What to do Instructions Pro 180-degree turn: what and with whomRUSSIAwill trade now Forecasts Pro Russia has double-digit inflation.What assets can insure against it Articles Pro Why is it difficult for Russia to sell more in CHINA Articles

As of April 1, the volume of liquid resources of the NWF (funds in accounts with the Bank of Russia not related to infrastructure projects) amounted to the equivalent of 9.7 trillion rubles. Despite the freezing by Western countries of more than 45% of the liquid part of the NWF, the Ministry of Finance can use it without restrictions, since the Bank of Russia is going to virtually convert this currency into rubles for spending from the NWF, Central Bank Chairman Elvira Nabiullina said.

The material was corrected at the request of the ministry: it clarified that proposals for new budget rules are being worked out by the Ministry of Finance, but have not yet been discussed at the government level.

Favorable course inFavorable exchange rate at VTB officesThe larger the amount, the greater the benefit.More than 1,000 branches across the countryPreliminary calculation onlineconverter