Page 69 - RusRPTDec22

At the same time, in 2023, to ensure a balanced budget, it is possible to use funds from the NWF in the amount of RUB2.9 trillion.
The volume of the fund at the end of 2022 is expected to be at the level of RUB8.99 trillion s. (6.2% of GDP), in 2023 - RUB6.3 trillion (4.2%). In 2023, the Ministry of Finance plans to place government securities in the amount of RUB2.5 trillion s.
Budget revenues for January-October 2022 amounted to RUB22.140 trillion s. (including oil and gas - RUB9.788 trillion, non-oil and gas - RUB12.352 trillion), expenses - RUB22.011 trillion, surplus - RUB128.4bn, according to preliminary data from the Ministry of Finance.
Siluanov, commenting on the plans for borrowing until the end of the year on Tuesday, November 22, noted that as long as there is demand on the market, the Ministry of Finance takes advantage of this and attracts resources on acceptable terms.
“We have two sources of financing the deficit - the National Wealth Fund and borrowing in the financial market. The NWF is a resource that we have recently been using for investments, for economic development, and for projects. Therefore, today there is an opportunity to borrow in the financial market, we see demand from investors, we offer a wide range of tools for investors, and they are popular,” he told reporters.
6.1.4 Budget dynamics - regions
Several regions started adopting their 2023 budgets towards the end of November, which, in many cases, reflect a worsening fiscal outlook. Russia’s regions, which rely on only individual and corporate income taxes for revenues, are exposed to the war.
In the Samara Region, for instance, planned expenses were reduced by more than 20%, while the planned deficit more than doubled. Since the amount of transfers from the federal budget to regions are expected to fall by RUB400bn in 2023 (and further RUB650bn over the 2024-25), and the share of no-strings-attached transfers have declined over recent yeaqrs in favour of subsidies and discretionary transfers, regional governments will likely have to scramble for funds even more.
Overall, regional budgets are expected to run a consolidated deficit of RUB77.4bn rubles next year, which is already leading to calls to reduce administrative expenses (and over time, likely investment projects as well).
Regions will be expected to allocate funds to a multitude of war-related
69 RUSSIA Country Report December 2022 www.intellinews.com