Page 83 - RusRPTOct20

Minister of Finance Anton Siluanov has recently announced the new estimate for the budget deficit for FY20, which was narrowed down from the previous 5% GDP to 4% GDP and bodes well with VTBC RUB3.7​4.2 trillion projections for the deficit.
It is difficult to pin down the exact number, since uncertainty regarding oil prices, the pace of the recovery of economic activity, and the full amount of expenditures still remains.
MinFin collected RUB1.29 trillion in August (​28% y/y), with the sharp contraction coming from oil & gas revenues (​35% y/y in August vs. ​48% y/y in July vs. ​68% y/y in June) reflecting oil prices being lower than last year and the decline in volumes of both crude oil extraction and exports.
Non​oil & gas revenues fell ​24% y/y in August vs. ​23% y/y in July, with, as in the previous month, the contraction predominantly driven by 'other revenues' (​45% y/y).
Since 'other revenues' includes dividend income, this likely reflects the postponement of the dividend income received from state-owned enterprises.
Both imported VAT and VAT on internal sales revenues fell ​4% y/y, corporate profit tax collection was in the red ​38% y/y.
Budget expenditures rose +25% y/y in August vs. +37% y/y in July. The high annual growth rates in budget spending could be traced back, above all, to social policy measures, spending on, which increased +46% y/y.
83 ​RUSSIA Country Report​ October 2020 ​ ​www.intellinews.com