Russian Finance Ministry: non-oil and gas budget revenues to increase

 Russian Finance Ministry: non-oil and gas budget revenues to increase

Russia’s Finance Ministry expects non-oil and gas revenues to rise by almost 900 bln rubles ($14.2 bln) in 2016 owing to the purchase of Rosneft stake, the Russian Finance Minister Anton Siluanov said.

"We expect non-oil and gas revenues to increase by almost 900 bln rubles in 2016 budget. If we had not sold a stake in Rosneft and had not received a stake from Rosneftegaz, respectively, non-oil and gas revenues would have increased by 194 bln rubles ($3 bln) mainly due to better value-added tax administration," he said at the meeting of the Committee on budget and fiscal policy in the State Duma.

According to Siluanov, the share of oil and gas revenues in the total amount of budget revenues is declining. "Regarding this year and next year, we see that previously it exceeded 50%, which actually demonstrated our dependence on revenues from the current economic situation and unsustainability of the budget, whereas now, in 2016, we estimate the share of non-oil and gas revenues at 64%, which is substantially higher than initially planned in the budget," TASS cited him as saying.

The official added that "the budget plan was 56%, respectively, and the sustainability of the budget will be rising both this year and years to come."

Siluanov also said that this year’s non-oil and gas revenues include those from Rosneft privatization. "Usually this is a source of budget deficit financing as we’ll receive the funds from privatization of 19.5% stake via Rosneftegaz dividends. The dividends will be transmitted to the federal budget and will be considered as revenues," he said.

In 2016, Russia’s non-oil and gas revenues dropped to 9.4% of GDP, a 1.3 p.p. decrease compared with initial budget planning, the minister said.