The Ministry of Finance counted the potential budget deficit in the current year

The Ministry of Finance leaves open the possibility of emergence of the risks of federal budget implementation in the current year with the deficit just over 3% GDP. This was pronounced by Anton Siluanov, the Minister of Finance, to the journalists at the end of 2014.

Having said that Mr. Siluanov stated that such a pessimistic forecast is realistic providing that the current dynamic of oil prices and economic growth rates remain the same.

The head of the ministry expressed an opinion that even if the limits for the next year are reduced by 10 %, it won’t be enough to balance the budget. At the same time, he stated that the Ministry has several ideas on further measures necessary for optimizing of the budget. In this issue two ways of development are suggested: either gradual consolidation or optimization of budget in accordance with the current state of business, or use of the Reserve Fund in grater volumes.

Furthermore Mr. Siluanov stated that in 2015 the Ministry is off to come to decisions on budget and finances, orienting on the current situation. At the same time by 2017 the Ministry of Finance sets for itself a goal of the balanced budget at the oil price USD 70 p/b.

The head of the Ministry stated that concerning additional capitalization of banks the budget deficit in the current year will amount to 0,7% GDP. Earlier the Audit Chamber mentioned the figure 0,8-1% GDP.

It bears reminding that as of December 19, 2014 the State Duma passed the law on allocation of RUR 1 trillion as an asset contribution to the Deposit Insurance Agency for additional capitalization of banks through federal loan bond mechanism.