The meeting of the state Duma with the participation of Dmitry Medvedev
Photo: Anton novoderezhkin / TASS
Reserve Fund in 2017 will not be exhausted, said Russian Prime Minister Dmitry Medvedev. About the depletion of the Fund has repeatedly said the government
Reserve Fund from which the government funds the Federal budget deficit, will not be exhausted before the end of 2017, promised by Prime Minister Dmitry Medvedev during the annual government report to the Duma, the correspondent of RBC.
“We manage to keep the budget deficit at an acceptable level. The main source of covering the deficit is the Reserve Fund, money which theoretically was supposed to end by the end of this year. But this will not happen: we have earned more than planned,” — said Medvedev.
According to him, an unplanned budget revenues was formed “including by mobilizing revenue”, although “the reserves there is plenty”. The government will continue to act in the same direction, he added.
Exhaustion of the Reserve Fund in 2017, has repeatedly warned the Ministry of Finance. In January last year this was announced by the Minister Anton Siluanov. The budget deficit will have to cover the expense of the national welfare Fund (NWF), explained the Finance Ministry. Reserve Fund and national welfare Fund was set up in 2008, before Russia’s reserves were concentrated in the Stabilization Fund.
In 2016, the amount of the Reserve Fund decreased 3.7 times compared to year 2015 (972,1 billion, compared with 3.6 trillion rubles). As of April 1, the size of the Fund is less than 913 billion roubles (1.1% of GDP). Since February, the Treasury buys foreign currency due to oil revenues of more than $40. This currency will go to the Reserve Fund at the beginning of 2018, said Siluanov (quoted by “RIA Novosti”).
That Reserve Fund in 2017 can be retained in January, said the Minister of economic development Maxim Oreshkin. “With regard to the budget system, the price of oil started at the beginning of this year. We have a very good opportunity to reduce the use of the Reserve Fund and keep the Reserve Fund at the end of the year,” he said.