THE STATE OF THE BUDGET SYSTEM OF RUSSIA IN 2016

Abstract

Russian economy stayed in recession in 2016. The nominal growth of the Russian Federation consolidated budget revenues was so insignificant that it even could not compensate a rather low level of inflation. The structure of revenues of the consolidated budget and the budgets of the state social funds remained practically unchanged in comparison with the previous year. The main expenditure item for the Russian budget system is social policy. The largest drop in revenues and the greatest increase in the deficit are observed with the federal budget. This situation has occurred due to a decrease in oil and gas revenues. In general, all subfederal budgets managed to reduce sufficiently budget deficits via reducing various kinds of expenses. The growth of the revenues of the system of state social off-budget funds corresponded to the rate of inf lation and actually compen sated their inf lationar y depreciation.