Russia’s Oil and Gas Revenue to Make Up Only 1/3 of All Budget Income – Putin
Sputnik/ Ramil SitdikovBusiness13:37 24.10.2017(updated 14:50 24.10.2017) Get short URL292070
The Russian president has delivered a speech to the 9th annual “Russia Calling” investment forum in Moscow. The event, which begins today, seeks to facilitate cooperation among the members of the global business community.
The “Russia Calling” forum includes panel discussions as well as separate meetings between international investors and representatives of Russian businesses. The event is scheduled to come to an end on October 26.
Russia Expects Non-Oil, Gas Budget Deficit to Drop to 5.9% of GDP in 2019
According to President Vladimir Putin, Russia’s authorities expect that the non-oil and gas budget deficit to decrease to 5.9 percent of its GDP in 2019, as compared to the current level of 8.5 percent.
“The dependence of the federal budget from the oil market situation is confidently decreasing. If in 2014 the oil and gas revenues accounted for more than half of the budget revenues, 51.3 percent, then this year, already about 39 percent.”
He further said that the Russian government expects that “the non-oil and gas budget deficit will decrease from 8.5 percent right now to 5.9 percent of the GDP as early as 2019, and the general deficit of the federal budget will be less than 1 percent.”
Thus, in the following three years, oil and gas incomes are set to become only 1/3 of all incomes in the Russian budget, accorrding to the president.
Russia Ready for Cooperation as Economy’s Stagnation Ends
Commenting on the state of Russian economy, the Russian president noted the end of stagnation and said that Moscow is ready to boost cooperation on the international level.
However, Putin expressed dissatisfaction with the current rate of Russia’s economic growth, saying that it should be greater than the world average index. As he explained, currently some structural limitations impede the solution of this problem.
In addition, Putin mentioned the improvement of the business climate in the country, stimulation of competitiveness and the creation of more comfortable conditions for investments as a part of Moscow’s plans on the improvement of the country’s economy. He also named the digital economy and the launch of new business models as one of the main factors that will allow Russian companies to become more competitive and strengthen the economy as a whole.
“I am confident that the development of the digital economy, the launch of new business models will allow Russian companies to become more competitive and, in general, diversify the economy, give impetus to the development of industries and markets based on breakthrough technological solutions, and provide higher living standards for Russian citizens,” Putin said.
Central Bank Policy
The Russian President expressed confidence in the Russian Central Bank’s policies amid the existing threats, as the president noted.
“The inflow of capital and foreign trade recovery is strengthening the country’s balance of payments, the gold and currency reserves of Russia have grown 13 percent since the beginning of the year, the ruble exchange rate has stabilized,” Putin said.
According to him, the conservative budgetary and monetary policy of Russia has proven its value in recent years, but now it is time to move forward, given the problem factors of the Russian economy.
“We perfectly see, we know what to do about it,’ Putin added.
He explained that it is necessary to find a balance between ‘maintaining stability and more actively supporting new factors in the Russian economy.
“In recent years, Russia followed conservative, restrained budgetary and monetary policy,” Putin recalled.
He stressed that it ensured the stability of the economy, the stability of public finances and the banking sector, form the basis for a positive and long-term development.
Vladimir Putin has said that investment growth in Russia reached 4.2 percent within nine months of the current year, while inflation in the country has slowed to 2.7% in comparison to the previous year.
He underlined that food exports grew by 4.9% reaching 17.1 billion dollars, overtaking weapons exports.
The President said the growth of industrial production in Russia during the three quarters of 2017 was 1.8%. Since the second quarter of this year, the rate of [GDP growth] exceeded two percent.
The president announced the agricultural sector as the largest non-energy exporter of Russia. As he said, in January-August this year, foreign deliveries of food and agricultural raw materials increased by 19.6%, amounting to 11.9 billion dollars.
“Fall is in full swing, we still have a lot ahead,” the Russian leader concluded.