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Experts note necessity to raise budget spending for Russia’s structural development

The experts consider it necessary to maintain state expenditures at the level not lower than 34.5% of GDP

MOSCOW, October 30. /TASS/. It is necessary to maintain Russia’s federal budget spending at the level above 34.5% of GDP to solve structural development tasks amid the current level of the state’s functions, according to the economic monitoring report prepared by the Russian Presidential Academy of National Economy and Public Administration (RANEPA) and the Gaidar Institute for Economic Policy.

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"Amid the current fiscal rule and sustainably decreasing revenues from the oil and gas sector the budget forecast envisions a gradual reduction of budget expenditures by 2.8 percentage points - from 34.7% to 31.9% of GDP in the period between 2019 and 2036. We consider it necessary to maintain state expenditures at the level not lower than 34.5% to solve structural development tasks amid the current level of the state’s functions and the scale of the state sector," the report said.

In 2020-2022, it may be required to boost federal budget spending by 0.5-0.7 percentage points per annum for the benefit of investments in human capital and infrastructure to achieve national goals, experts added.

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