Page 71 - RusRPTNov22

6.1.2 Budget dynamics - specific issues...
The Duma passed a new law in October regarding the Budget Rule that establishes a hard nominal floor on forecast oil & gas revenues and sets a ceiling on non-oil & gas budget contributions, base oil & gas revenues, state expenditures to service debt, and the provision of credits paid out of budgetary inflows. As of now, the 'floor' for oil & gas revenues is 8 trillion rubles – MinFin is forecasting 11.67 trillion for this year with the current 'floor' at 6.15 trillion rubles. After 2025, the 8 trillion ruble floor will be indexed at 4% annually to match the Bank of Russia's inflation target. The thinking is, in part, that setting an 8 trillion ruble target will help stabilize the ruble/$exchange rate at 62-75. The assumption is that any revenues above what's necessary to cover these parametres will then be set aside into the National Welfare Fund (NWF).
71 RUSSIA Country Report November 2022 www.intellinews.com