Weak Ruble Gave Russian Budget 1 Trillion

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September 9, 2015

Vesti Finance

Translated by Kristina Rus

Oil and gas revenues fall, others grow. The budget increased from the weakening ruble, said Finance Minister Anton Siluanov.

“Oil and gas revenues decreased in the first half by 19.6% compared with the previous year as a result of the decline in global oil prices, totalling about 2 trillion rubles. The strengthening of the dollar against the ruble gave an increase of 1.1 trillion rubles,” – Siluanov said today in his speech at the government meeting.

“At the same time on the background of weakening ruble non-oil revenues increased by 6.7%. Non-oil and gas deficit was 11% for the first half, which is also the highest figure for the last 10 years,” – the Minister said.

“Compared to the same period last year in the first half the cash execution of expenditures has increased by more than 1 trillion, or 2.1% of GDP. The level of execution – 47.9% of the plan. This is the highest in the past eight years,” – said Siluanov.

The budget deficit of the Russian Federation in the first half of 2015 amounted to about 2.3% of GDP, for the year is expected to be less than 3%.

Sources of financing the budget deficit

“In the first half we borrowed on the domestic market 357 billion rubles, mainly federal bonds with a variable coupon, we borrowed from the market about 65% of all loans,” – said the head of the Ministry of Finance.

“Reserve Fund: for the first half we spent 500 billion rubles, as of September 1, already 900 billion was used from the reserve fund, – the Minister said. – From the NWF [National Welfare Fund] this year we have invested about 350 billion rubles, into projects such as “Yamal LNG”, Central ring road, the acquisition of traction rolling stock, the construction of a nuclear power station in Finland and so on. Our total sovereign funds as of September 1 was 9.6 trillion rubles, or 12.9% of GDP”.

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