IN BRIEF: Russian government completing draft federal budget

  MOSCOW: The Russian government is completing the preparation of the budget for the next three years. It will be finalized and submitted to...

 


MOSCOW: The Russian government is completing the preparation of the budget for the next three years. It will be finalized and submitted to the State Duma, the lower house of the parliament, by October 1, Prime Minister Mikhail Mishustin said at a cabinet meeting on Tuesday.

He also announced plans to increase the minimum monthly wage, which will amount to 22,440 rubles ($241) at the beginning of 2025.

In turn, Finance Minister Anton Siluanov noted that the federal budget provides for adjustment of maternity capital to inflation.

TASS has assembled the main points raised during discussion of the draft.

Draft budget

The work on the budget was carried out amid the ongoing imbalance in the global economy and a slowdown in global GDP growth, Mishustin said. He also called for remembering "the importance of maintaining budget balance." The Prime Minister noted that the current draft has an optimal ratio of revenues and expenses.

According to Mishustin, the revenues of the Russian federal budget in 2025 will grow by 12% - to 40.296 trillion rubles ($433 bln).

The draft federal budget provides more than 40 trillion rubles ($430 bln) to finance 19 national projects over the next six years, said Finance Minister Anton Siluanov: "This is actually twice as much as in the previous six years." He noted that the budget deficit within three years will not exceed 1% of GDP.

Significant amounts of resources in the budget are directed to support the regions, Siluanov said. Also, according to him, the provision of budget loans for the infrastructure development of Russian entities will continue and the write-off of regional debt on budget loans will begin.

The write-off amount is set at two-thirds of the total debt: "This will significantly reduce the debt of the regions by 2030." Siluanov named social support for citizens, financial support for defense expenses, and ensuring the country's technological leadership as the main priorities in forming the federal budget.

Minimum wage

Mishustin announced plans to increase the minimum monthly wage, which will amount to 22,440 rubles at the beginning of 2025: "This will help increase the salaries of about 4 million workers."

Russian economy

The Prime Minister noted that the Russian economy is experiencing enormous pressure due to sanctions, but these challenges are being countered, as well as supporting "citizens, businesses, and development projects, forming the foundation for further growth."

Mishustin added that the country's GDP grew by 4.4% in the first 7 months of this year, "which is more than twice as high as last year's figures."

The real sector industries have become the "main driving forces " of Russian economic growth, with the manufacturing industry growing by 8.6%, he said.

Maternity capital

The federal budget provides for adjustment of maternity capital to inflation, Siluanov said. He also noted that the remaining maternity capital funds are to be paid out if they are less than 10,000 rubles ($107.5).

Inflation

Inflation in Russia has begun to slow down after peaking in July of this year, Economic Development Minister Maxim Reshetnikov said.

"In 2025, average annual inflation will continue to slow down, and in 2026, it will reach the target level," he said.


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Local Glob: IN BRIEF: Russian government completing draft federal budget
IN BRIEF: Russian government completing draft federal budget
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