The Ministry of Finance will spend from the national welfare Fund to 2 trillion rubles

At the end of 2019, Russia’s GDP totaled 109 trillion this year according to all forecasts it will decline by a few percentage points. Thus, the volume of fiscal support to the economy, suffered from the dual shock, could reach about 7 trillion.

According to Siluanov, the direct costs budget for the containment of coronavirus, reducing the tax burden and providing tax deferments, and warranty support will be 2.8% of GDP. This includes halving the rates of insurance contributions for small and medium enterprises (they will be able to save it in 2020, nearly 350 billion rubles), additional assistance to regional budgets (RUB 200 billion), direct payments operating in the affected industries (RUB 80 billion), Siluanov said.

“this year will use the resources of the national welfare Fund, at current oil prices ($20 per barrel) will refer to the economy of about two trillion rubles,” – said Siluanov. As of April 1 at the NWF was of 12.86 trillion.

“There are risks of a serious shortfall of taxes and other non-oil and gas revenues – we’re talking about amounts over a trillion, – said Siluanov. – We will compensate it at the expense of other sources”.

“the Direction of additional resources in spite of such a massive decline in income is a serious help for the economy, he stressed. – Thus, fiscal policy provides a counter-cyclical impetus.”

“in addition, the budget allocations for this year will be increased relative to the means laid down in the law on the budget in the summary budget inventory more than a trillion rubles – this is the unspent balance of previous years”, – added Siluanov.