RUSSIAN BUDGET SYSTEM IN THE FIRST QUARTER OF 2017

Abstract

In the first quarter of 2017 in the domestic economy took place business recovery as result of positive oil prices’ dynamics. Emerging growth of industrial production and external turnover together with low inflation rate has lead to the growth of budget revenues. The increase of oil and gas budget revenue was most significant (following oil prices’ increase). But also it was the increase of the non-oil and non-gas budget revenue. Under the condition of the budget revenue growth it was seen as well expenditures’ increase, mostly for social purposes and for retirement benefits. Despite the essential revenue increase, the federal budget balance is still negative. But the size of deficit was significantly reduced in comparison with the first quarter of 2016. The system of social funds deficit is remaining mainly due to Pension Fund deficit. In general, the balance of all consolidated sub-federal budgets in Russia was positive, but the situation varies essentially among regions.