Russia has suffered from the “Dutch disease”, but the reserve fund will be replenished with oil
Russian budget revenues from the sale of oil and gas decreased from 9,6% of GDP in 2014 to 5,8%. Russian Finance Minister Anton Siluanov stated this today, speaking at the Gaidar Forum.
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“In 2019, a further reduction of about 0,4% of GDP is planned. We have passed the main shock period. All crises were associated with the fact that the budget depended on commodity prices. We suffered from Dutch disease. In order to find a cure for this disease, we need normal principles of budget formation,” Siluanov said.
He assured that the government intends to receive more budget revenues without increasing the tax burden. In particular, by reducing the shadow sector.
At the same time, the reserve fund can be maintained in 2017 if the oil price remains at $50 per barrel.
“We will be able to maintain the reserve fund, because the volume of additional income could amount to about 1 trillion rubles. I believe we should use revenues from the oil and gas sector to reduce expenses of the reserve fund,” Siluanov said.
Previously, when planning the budget for a three-year period, the Ministry of Finance proceeded from the fact that in 2017 the Reserve Fund would be completely exhausted.
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