Article
Economic plans for 2017-2019 budget

On October 28, 2016 the State Duma received the draft budget for 2017-2019. The key priorities of the budget are: assistance in economic growth, financial support of priority projects and complete fulfillment of the social obligations. Another important factor is the budget balance. While forming the budgetary framework, the Government used the conservative basis with the worldwide average oil price of 40 USD per barrel. It is expected, that till the end of the year the project «On Federal Budget for 2017 and the Planning Period of 2018 and 2019» will acquire the status of the Federal Law. The main budget indicators, submitted by the Government of the Russian Federation, are represented in Table 1.

Table 1. Main 2017-2019 budget indicators
Indicator201720182019
Exchange rate, ruble for dollar 67,5 68,7 71,1
Average oil price, USD per barrel 40 40 40
Inflation, % 4 4 4
GDP, trn RUB 86,806 92,296 98,860
Growth, % 0,6 1,7 2,1
Income, trn RUB 13,487 14,028 14,844
Expenses, trn RUB 16,240 16,039 15,987
Deficit, trn RUB 2,753 2,011 1,142

According to the forecast, the main budget income will form on the base of non-oil and gas revenues. Their share will be 62,6%, the other part will be filled by oil and gas revenues. Main non-oil and gas revenues are nominally represented by three groups: domestic production, import and others. The income from domestic production includes: VAT (77,8% in the group), excises (21,7%), income tax (16,1%). The income from import is formed by VAT (79,6% in group), excises (2,5%) and entry fees (21,0%).

Within expenses the largest part is intended for social policy - 5,08 trn RUB (31,3% of total expenses), 2,83 trn RUB (17,5%) for defense, 2,32 trn RUB (14,3%) for national economy, 1,94 trn RUB (12,0%) for national security and law enforcement activities, 1,20 trn RUB (7,4%) for national issues. Other articles take from 5% - 1% or less of total expenses. For public and municipal debt management is planned to allocate more than 728 bln RUB - 4,5% of total expenses. The deficit between income and expenses is planned to cover by the Reserve Fund, the National Wealth Fund, borrowings and other sources.

Within the budget expenses can be divided on 5 directions:

  • New living standards (13 government programs) - 3,2 trn RUB are planned,
  • Innovative development and modernization of the economy (18 programs) - 1,99 trn RUB,
  • National security protection (1 program) – 1,7 trn RUB,
  • Balanced regional development (6 programs) – 0,99 trn RUB,
  • Effective State (4 programs) – 1,58 trn RUB

The budget expenses also include financial support for the development of certain industries within the government programs. Among such industries are: aviation industry, shipbuilding, electronic and radio-electronic industry, pharmaceutical and medical industry, agriculture, the development of fishery industry and others. It is also planned to support the export in the following industries: car industry, aviation industry, agricultural engineering industry and railway machinery.

The next three years are expected to be complicated. Economy will continue to be under the influence of internal and external negative factors; its significant restructuring and capacity increase are not expected. The previous economy model, based on export of raw materials and stimulating of consumption, has reached its limits. It is expected, that potential increase in economy growth is possible only after structural measures, the effect from which appears after a certain time; that was taken into account while budget planning.

Article
New Regulation on the Russian State Internet network segment

The new Regulation on the Russian state information and telecommunications network Internet segment was approved by the Order №443 of the Federal Guard Service of the Russian Federation (FGS) as of September 7th, 2016 instead of the Regulation being valid since 2009. The new regulation was developed in accordance with the Edict of the President of the RF as of May 22nd, 2015.

Provision is made for creation of the individual state segment of Internet network called RSNet on the basis of the operating information and telecommunications networks of the FGS. In future information systems and information and telecommunications networks of the federal state governmental authorities as well as their subordinate organizations will be connected to RSNet network. The connection will be carried out by the Special communications and information service of FGS in cooperation with:

  • private communications providers, rendering services on granting Internet access;
  • state authorities and organizations, connected to the Internet and publishing information there;
  • organizations, working on the basis of public and private partnership, dealing with development of network services and data security protection.

In order to connect to RSNet network, state authorities and communications providers concluded an agreement having technic specifications for connecting, including description of processing area, communications channels, data transmission speed and information security requirements.

For users of state governmental authorities web-sites there won’t be any external changes. However, according to developers, information security in databases of state authorities will be improved what looks particularly true considering the increasing traffic of data transmission in Internet network.

Thus according to data of the Ministry of Telecom and Mass Communications of the Russian Federation, information volume transferred from/to subscribers through Internet access (including mobile network) in 2015 increased by 36,5% comparing with 2014 and for 6 months of 2016 the traffic increase amounted to 23,3% to corresponding period of 2015 (Figure 1). Meanwhile, according to Information and Analytical system Globas-i, currently there are 1 077 vibrant organizations, having among registered types “Activities on providing data transmission and access to information and communication network Internet”.

Information volume transferred from/to subscribers through Internet access (including mobile network), Gbyte
Figure 1. Information volume transferred from/to subscribers through Internet access (including mobile network), Gbyte

(*) forecast on 2016 is calculated according to average value of indicators and growth rates of 2014-2015 and for 6 months of 2015-2016

It is expected to put into operation 35 network nodes of RSNet and 5 protected regional centers of data processing by the end of 2016 by the State program “Information society” for 2011-2020, approved by the Government of the RF within change-over to program principles of budget formation.

The state system of legal information “Official Internet Portal of Legal Information” is already operating in RSNet network.