Siluanov said the aim at covering the budget deficit amount

Anton Siluanov

The Finance Ministry this year hopes to send to cover the budget deficit of about 16 billion euros. About it as transfers TASS, said the head of Department Anton Siluanov in interview to the newspaper Handelsblatt, which is published in number for Tuesday, may 2.

According to him, in 2017, the Reserve Fund was planned to withdraw in terms of some 29 billion euros. “But, according to the latest projections, we can this figure be reduced to 16 billion euros,” he said.

The Siluanov expects that this year all the reserves will not be exhausted. “We are implementing a responsible fiscal policy that allows you to maintain the level of reserves and good market conditions in the next few years to fill them again,” said the Minister.

Siluanov also said that he believes it possible to reduce the budget deficit to 2 percent of GDP in the current year. However, he recalled that the initially planned deficit of 3.2 percent of GDP, by 2019 this option is to be reduced to 1.2 percent.

According to the Minister, the reason for the improved budget situation is a “higher-than-expected economic growth, better tax administration and substantial growth of foreign trade”. “In addition, fiscal and financial policies had a favourable impact on inflation: in 2016, with 5.6% we had the lowest inflation rate in Russian history. This year it will be only 4 percent,” — said Siluanov.

The Federal budget for the current year-with a forecast deficit of 3.2 percent of GDP, while the average oil price of $ 40 per barrel. To Finance its deficit, the Cabinet of Ministers intends by internal and external borrowing and also due to the use of the Reserve Fund. As a result, total amount of debt in the current year will increase to 14.6 percent of GDP.

The reserve Fund was established to Finance unforeseen expenses and events, expenses for which are not included in the Federal budget. The government allocates funds at their own discretion, not many changes in any legislation.