Page 53 - RusRPTMar20

predominantly come from higher VAT collection (up RUB81bn) and an increase in the expected dividends collection (RUB60bn).
Net debt issuance plans were unchanged: domestic debt stock was forecasted to rise RUB1.74 trlllion, while external debt stock was expected to shrink RUB0.33tn.
6.1.1 ​Budget dynamics - results
Budget spending was up almost 53% y/y in January, reaching a record high for the month of RUB1.7 trillion.
The sharp rise was due to the government's attempts to make up for spending delays toward the end of last year (including on defense and the national projects), as only 91% of the budgeted funds were actually allocated to national projects during the year.
Revenues were up just 4.7% y/y (to RUB1.6 trillion) in January, ​which pushed the budget into deficit to the tune of RUB160bn. Budget spending is usually more muted at the beginning of the year due to the long holiday period and associated bureaucratic delays. However, the new government is focused on implementing the national projects, so we expect spending to be frontloaded somewhat in the first half of this year.
Spending on the national economy (which includes items related to the national projects) surged 268% y/y in January​, while defense spending jumped 182% and environmental expenditures rocketed by 1,100%. The most significant increase was registered in healthcare (+2,086%, an increase of
53​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com