Russia Predicts Larger Budget Shortfall, Wealth Fund Reserves Tapped
(MENAFN) Russian Finance Minister Anton Siluanov announced Tuesday that a decline in oil and natural gas revenues will lead to a larger budget deficit. To cover this shortfall, the government will utilize reserves from the National Wealth Fund.
According to a news agency, Siluanov stated to reporters in Moscow, "Overall for the year, based on the forecasts given to us by the Ministry of Economy, which we have adopted as the basis for adjusting the federal budget, we are using the National Wealth Fund's funds in the amount of 447 billion rubles ($5.48 billion)." He specified that the amount drawn from the fund would be 447 billion rubles ($5.48 billion), based on economic forecasts from the Ministry of Economy that have been adopted for federal budget adjustments.
Siluanov highlighted that adjustments to budget forecasts were made due to fluctuating oil prices. However, he assured that, “We do not expect any additional borrowing volumes or increase in expenses in excess of the growth of non-oil and gas revenues. This means that the volume of borrowing on the market is not increasing." This statement came as he addressed the revised forecast for the 2025 budget deficit, which has increased from 0.5% to 1.7% of the country's gross domestic product (GDP).
The Finance Minister confirmed that the fiscal policies, as endorsed by President Putin, are fixed and will not be altered before 2030.
As of April 1, Russia's liquid assets within its Sovereign Wealth Fund totaled 3.2 trillion rubles ($39.2 billion).
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
