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Russian Communist Party will not support draft budget for 2016 as it needs revision

November 13, 2015, 11:42 UTC+3 MOSCOW
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MOSCOW, November 13. /TASS/. Russia’s Communist Party will not support the draft budget for 2016 at today’s session in the State Duma, the party faction’s leader Gennady Zyuganov said on Friday.

"The [draft] budget should be refuted or sent for revision in accordance with Article 204 of the Budget Code," Zyuganov said.

He reminded that the Communist Party put forward a program on helping the country get out of the crisis at the opening of the autumn session. "If at least two-three provisions had been taken from our proposal, the budget would have been not 16 trillion [rubles] like now but 22 or maybe trillion [rubles] which would have allowed to implement the budget for development and solve many problems," he added.

According to the parliamentarian, the current budget is formed "by colonial scheme - we sell raw materials, inflate prices, and start robbing the population if we run short of money." The Communist Party spoke categorically against such course. "The government is not dealing well with the crisis and guarantees only deepening crisis in the next three years," Zyuganov noted.

Spending will stand at 16.1 trillion rubles ($250 billion), revenues - at 13.7 trillion ($210 billion), and budget deficit - at 3% GDP. According to the basic forecast for 2016, the GDP growth will stand at 0.7% next year, inflation - at 6.4%, and average oil price - at $50 per barrel. The average yearly currency rate is estimated at around 63.3. rubles per one dollar.

The draft budget for 2016 is principally different from the document prepared in 2014. The government is forming a one-year budget for next year without considering forecasts for 2017-2018. Next year a budget rule will be cancelled that defines maximum spending in accordance with the average oil price over the last three years. The main source of financing the budget deficit will be the Reserve Fund, and the government plans to spend 2.137 trillion rubles ($33 billion) for covering the deficit.

In 2016 investment at external and domestic financial markets is expected at 393.2 billion rubles ($6 billion). The volume of net domestic government borrowings is estimated at 300 billion rubles ($.58 billion). Possibilities of net investment on the international market are expected at around $1.5 billion.

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