Putin signed a law to change the parameters of the budget of the Pension Fund for the year 2018

Putin signed a law to change the parameters of the budget of the Pension Fund for the year 2018

The revised index of consumer prices, the subsistence minimum of a pensioner, as well as the results of execution of the budget for 2017 and the expected budget execution in the current year.

MOSCOW, July 4. /TASS/. Russian President Vladimir Putin signed a law to change parameters of the budget of the Pension Fund of Russia (PFR) in 2018 based on the outcomes of socio-economic development in 2017 — the income will be lower, and costs will increase.

The document adopted by the state Duma on 21 June and approved by the Federation Council on June 27, published on a single portal of legal information.

The law specifies the index of growth of consumer prices, the subsistence minimum of a pensioner, as well as the performance of the Fund’s budget for 2017 and the expected execution of the budget of the Fund in 2018. The main parameters of the budget of the FIU for the planning period 2019-2020 do not change.

In accordance with the document, incomes of the budget of the FIU in 2018 will amount to 8,266 trillion (8.4% of GDP), an increase of 66.8 billion below the amount approved earlier by the budget of the Fund. Costs are expected to reach 8,532 trillion (8.7% of GDP), which is 92.2 billion rubles higher than previously thought.

Thus, the budget deficit of the pension Fund will be 265.5 billion rubles (0.3% of GDP) — 158.9 billion rubles above the previous figure, of which 158.9 billion rubles is not associated with the financing of funded pension.

Earlier, the head of the FIU Anton Drozdov explained that the budget deficit of Fund in this part is purely technical, related General order of financing of the Fund balances identified by the Budget code.

What will be covered the budget deficit of Fund

The law assumes decrease in Federal funds transmitted to the Fund in the form of interbudgetary transfers, to 68.3 billion rubles. Source of financing the deficit of the budget of the FIU in the part not connected with formation of means for financing of funded pension, are not used in 2017 balances, formed in the budget of Fund as at 1 January 2018.

Source of financing the budget deficit of the PFR in part connected with formation of means for financing of funded pension, are Fund balances of the Foundation’s budget funded pillar (pension funds, held in trust and temporary accommodation).

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