Page 11 - RusRPTNov21

“Everything is expected in excess. The budget rule does not change and will work in a three-year perspective. We can say that the RF budget is becoming a rather boring but predictable document,” Sofya Donets, chief economist at Renaissance Capital for Russia and the CIS, told The Bell.
The largest sections in the structure of federal budget expenditures are traditionally social policy (25% of all approved budget expenditures in 2022), the national economy (14.6%), national defense (14.8%), as well as national security and law enforcement (11.8%), follows from the explanatory note to the draft budget. Some 5.2% and 5.3% of all budget expenditures in 2022 will go to education and health care in 2022. In 2023–2024, healthcare spending is expected to decrease to 4.9% of all budget expenditures.
For all tasks within the framework of national projects and presidential messages, funding is provided in the amount of almost RUB12 trillion with significant growth throughout the entire three-year period (up 70% in 2024 to the level of 2020), the Ministry of Finance said.
At the same time, the Russian budget still remains conservative, which is justified for the oil country in the perspective of strengthening the global policy of decarbonization, Donets says. According to the draft budget, its non-oil and gas deficit will decrease from 7% in 2021 to 6.2% in 2022, 6.3% in 2023 and 6% in 2024.
What about taxes
In the tax area, the main innovation of the new budget is the withdrawal of additional resource rent from metallurgists and fertilizer producers, reports The Bell.
From 2022, the mineral extraction tax (MET) rates for mining companies will be pegged to world commodity prices. Due to the so-called tax maneuver, the federal budget plans to receive an additional RUB0.5 trillion in the next three years. But the business was able to fight off the increase in income tax to 25-35% for those who pay too many dividends and the decision was postponed to 2023.
For micro-enterprises (employing up to 5 people), the Ministry of Finance announced the launch of a new tax regime, USN.online. Similar to the tax for the self-employed, it is assumed that it will be possible to pay it through a "convenient interface" without the need to fill out declarations, follows from the "Main directions of budgetary policy until 2024."
In addition, the Ministry of Finance envisions increasing tax collection by introducing the institution of a “single tax payment,” which implies the payment of taxes by one payment order (without specifying details and other parameters) with subsequent offset against existing liabilities.
What about salaries and pensions
The government in 2022 returns the indexation of salaries of federal civil servants, judges, prosecutors, employees of the Investigative Committee, etc. (it was suspended in 2021 in order to balance the budget) to the inflation rate -
11 RUSSIA Country Report November 2021 www.intellinews.com