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Duma Committee approves amendments to increase in Russian budget deficit for 2nd reading

As the head of the State Duma Committee on Budget and Taxes Andrey Makarov explained, six amendments were proposed for the bill, one of which was withdrawn

MOSCOW, July 1. /TASS/. The State Duma Committee on Budget and Taxes recommended that the lower house of parliament adopt in the second reading amendments to the law "On the federal budget for 2024 and for the planning period of 2025 and 2026," which provide for an increase in the Russian budget deficit for 2024.

The document was initiated by the Russian government. The State Duma, lower house of parliament, is expected to consider amendments to the budget for 2024 in the second and third readings at a meeting on July 4.

As the head of the State Duma Committee on Budget and Taxes Andrey Makarov explained, six amendments were proposed for the bill, one of which was withdrawn.

The Committee approved the amendment introduced by State Duma Chairman Vyacheslav Volodin regarding increasing funding for Slavic universities in the CIS countries.

"As you remember, we were unable to resolve this issue before the adoption of the budget regarding the financing of Slavic universities. Now these 650 million rubles ($7.4 mln) have been found," Makarov noted. The government supported the amendment.

The State Duma was adopted the bill in the first reading on June 20. The document makes changes to a number of indicators approved for 2024 (indicators for the planning period of 2025 and 2026 do not change), which are mainly related to the implementation of the address of President Vladimir Putin to the Federal Assembly dated February 29, 2024 and specific instructions of the President, the explanatory note says.

About changes in budget indicators

The bill proposes to increase the estimate of the federal budget deficit for 2024 to 2.12 trillion rubles ($23.9 bln) (1.1% of GDP) from the currently approved 1.595 trillion rubles ($18 bln) (0.9% of GDP), as follows from the text of the amendments.

The income estimate was lowered from 35.065 trillion rubles ($392.5 bln) (18.3% of GDP) to 35.062 trillion rubles ($392.4 bln). The forecast for additional oil and gas revenues was reduced from 1.821 trillion rubles ($20.3 bln) to 1.053 trillion rubles ($11.7 bln).

Expenses are expected to exceed the indicators approved by law and will amount to 37.182 trillion rubles ($414 bln) (19.4% of GDP) instead of 36.66 trillion rubles ($408 bln). The total amount of expenses increases by 521.972 billion rubles ($5.9 bln) to the extent of receipt of additional non-oil and gas income, as well as an increase in proceeds from the sale of shares and other forms of participation in capital owned by the Russian Federation.

The upper limit of the state internal debt of the Russian Federation is proposed to be increased to 26.68 trillion rubles ($304.6 bln) from 26.637 trillion rubles ($304.1 bln), the upper limit of external debt has been reduced to $63 billion from $64 billion.

The new parameters of the Russian budget are based on the GDP forecast in 2024 in the amount of 191.437 trillion rubles ($2.1 trillion) and inflation of 5.1% (previously 179.956 trillion rubles ($2.03 trillion and 4.5%).

Tax revenues of the federal budget in 2024 are expected in the amount of 27.701 trillion rubles ($315 bln), non-tax revenues - 6.521 trillion rubles ($74.3 bln), gratuitous receipts - 839.828 billion rubles ($9.5 bln).

The projected volume of funds of the National Wealth Fund at the end of 2024 will increase from 11.19 trillion rubles ($127 bln) up to 11.51 trillion rubles ($129 bln). (by 319.7 bln rubles ($3.6 bln) due to exchange rate differences.