Page 72 - RusRPTSept21

additional oil and gas revenues in the NWF to the tune of about R0.7 trillion in 2022 and R0.8 trillion in 2023.
Russian budget revenues in July surged 82.3% y/y, pushing total revenues in 7m21 to RUB13.6 trillion ($185bn), Sberbank CIB said in a note.
Non-oil and gas revenues climbed 43.8% y/y in July, putting the 7m21 figure at RUB8.9 trillion. This would have been 40.2% higher than the 7m20 result if not for the Sberbank deal (RUB1.1 trillion); including the deal, non-oil and gas revenues were still up 20%, Sber said.
Amid higher oil prices and increased production, oil and gas revenues almost tripled y/y in July, for revenues of RUB4.8 trillion in 7m21.
Overall budget spending was up 20.7% y/y in July and totaled RUB12.8 trillion in 7m21. As a result, the budget surplus stood at RUB115.6bn ($1.57bn) in July and RUB890.3bn ($11.2bn) in 7m21.
Budget expenditures are set to increase over the remainder of the year thanks to the additional spending announced by President Putin not long ago. As a result, the current surplus will shrink to around RUB0.1 trillion for the full year.
“Next year, we expect the surplus to expand to RUB0.8 trillion,” Sber said in a note.
6.1.2 Budget dynamics - specific issues...
MinFin reaffirmed its intentions to cut the borrowing plan for this year:
the issue emerged back in March. The current discussion between MinFin and MinEconomy is centred on whether any excess or shortfall of non-O&G federal budget revenues needs to be absorbed by the borrowing plan (as the current fiscal rule suggests), or channelled to the government’s reserve fund (MinEconomy proposes to make the latter a permanent practice).
At a pre-election gathering of the United Russia party on August 22, President Vladimir Putin proposed additional one-off payments of R10,000 to retirees this year. He argued that their income is the most sensitive to inflation, which has accelerated considerably this year. The payments would come after the parliamentary elections in September. Putin also suggested R15,000 payments for the military in 2022. Given that the
72 RUSSIA Country Report September 2021 www.intellinews.com