Budget amendments for 2016 have passed their second reading in Russia’s State Duma.
The draft amendments imply an increase of Russia’s 2016 federal budget deficit to 3 trillion rubles ($47.2 bln), or 3.7% of GDP.
Budget expenditures will increase by 304.3 bln rubles to 16.4 trillion rubles ($258.2 bln), expenses will decline by 370 bln rubles to 13.369 trillion rubles, or 16,1% of GDP.
The domestic financing of the budget deficit will increase by 629.2 billion rubles to 3.04 trillion rubles. The use of resources of the Reserve Fund to cover the deficit would remain at the previous level of 2.136 trillion rubles.
At the same time the use of the National Welfare Fund will decline by 5.2 billion rubles to 8.8 billion rubles.
The oil price was reduced from the previously planned $50 per barrel to $41 per barrel. The inflation rate decreased from 6.4% to 5.8%.
According to the amendments, the Russian Government will have an opportunity to take 705 bln rubles ($11.1 bln) more from the Reserve Fund to cover deficit in this year.
"To stipulate that resources of the Reserve Fund in the amount of 705 bln rubles ($11.1 bln) may be allocated in accordance with the decision of the Russian Government to compensate federal budget revenues not received in the course of budget performance in 2016," the document says.
The Finance Ministry earlier requested an option of allocating 1 trillion rubles ($15.7 bln) rubles more from the Reserve Fund. The government needs this measure in case the budget does not receive revenues from privatization of the 19.5% stake in Russian oil major Rosneft by the year-end.
In addition, the amendment to increase Vnesheconombank's financing of projects in the Far Eastern Federal District by 809,765,000 rubles to 1.344 billion rubles was approved.
The funding of current activities of Russia's EMERCOM was increased to 637.335 million rubles.
