Russia's three-year budget prepared with surplus

The budget for 2020 and the planned period of 2021-2021 was submitted to the Committee on Budget and Taxes by Russia's State Duma Chairman Vyacheslav Volodin.

The draft will be considered at the Duma Council's plenary session on October 2. The period for consideration of the budget bill set by the Budget Code is not more than 60 days.

According to the draft document, the budget revenues in 2020 will amount to 20.379 trillion rubles (7.472 trillion rubles - oil and gas), in 2021 - 21.246 trillion rubles (7.679 trillion rubles - oil and gas), in 2021 - 22.058 trillion rubles (7.730 trillion rubles - oil and gas), TASS reported.

Expenditures in 2020 are planned in the amount of 19.503 trillion rubles, in 2021 - 20.634 trillion rubles, in 2022 - 21.763 trillion rubles. The projected GDP volume for 2020 is 112.863 trillion rubles. The budget surplus next year will be 0.8% of the GDP, in 2021 - 1.1% of the GDP, in 2021 - 0.8% of the GDP.

The vice-rector of the Academy of Labour and Social Relations Alexander Safonov, speaking to Vestnik Kavkaza, noted that the three-year budget was again drafted conservatively. "In any case, the Ministry of Finance decided to maintain the federal budget surplus. Accordingly, excess revenues associated with oil and gas production will continue to be cut off. As a result, we do not see a large increase in monetary spending on social policy," he explained.

A surplus in the range of 900 billion rubles laid down in the 2020 budget could be used for social needs. "Today, all participants in economic relations note the main constraining factor in the development of the economy - the lack of necessary consumer demand. All of the projects that have been successfully implemented in our country lately have been associated only with the domestic market. And it needs an increase in demand," Alexander Safonov emphasized.