Page 54 - RusRPTMar20

R286bn), as the government allocated 29% of the funds it has budgeted for this purpose this year in January. Analysts believe that most of the increase was channeled into the national projects and defense.
Federal budget deficit reached RUB160bn in January. ​According to preliminary Finance Ministry estimates, federal budget expenditures exceeded RUB1.7tn in January 2020. That is 53% higher than January last year and in line with the average monthly volume in the second half of the last year.
The high level of spending reflects a possible transition of the government to stimulating budget policy.​ But considering the modest growth of budget revenues by 4.7% y/y in January the current year’s rapid expenditure growth led to budget deficit of RUB160bn versus a surplus of RUB367bn in January 2019. This implies that by this year end the ability of the cabinet to support economic growth could be constrained.
6.1.2 ​Budget dynamics - specific issues...
The government approved amendments to the 2020-22 federal budget ​on February 18 to account for social promises made in Putin’s Federal Assembly address.
Over the next three years, Putin’s social measures—monthly stipends to low-income families with children, maternity capital payments, and hot lunches for school kids—will cost RUB2.1 trillion ($32.9bn), RUB1.8 trillion of, which will come from the federal budget.
While this is a notable increase from the initially-planned RUB19.5bn budget, federal government spending will remain balanced, with a projected 0.8%
54​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com