Page 70 - RusRPTJun20

that the budget deficit and all the additional budget spending will be covered by the National Wealth Fund, within the constraints of the budget rule (about RUB1 trillion), the proceeds from the Sberbank deal (RUB1.5 trillion already transferred to the budget), unspent funds from previous budgets (RUB1.1 trillion, according to the Finance Ministry), and additional borrowing.
The additional borrowing will act as a "balancing" item, the bank argues, with the another status quo balancing tool remaining in the FX market.
Most recently the Finance Ministry said that the ​OFZ federal bonds borrowing programme will be massively expanded​, without providing the numbers. The Finance Ministry already has placed over RUB1.1 trillion ($15.5bn) worth of bonds this year, out of originally planned domestic borrowings of RUB2.3 trillion. Previously extra borrowing of RUB2 trillion was said to be possible.
As reported by ​bne IntelliNews,​ so far the government has rolled out two economic support packages, worth RUB3.1 trillion ($42.1bn) or 2.8% of GDP, and is ​preparing a third package and a national recovery plan to be presented by June 1​.
6.1.4​ Budget dynamics - regions
Prime Minister Mikhail Mishustin has signed a ruling to relieve the Russian regions of payments for budget loans in 2020 ​due to the coronavirus pandemic, according to a ruling published on the government’s website on May 5. “In 2020, the regions are completely relieved from debt redemption. In 2021–2024, they will pay 5% of their debts per year, and in 2025–2029 they will redeem the remaining debt in equal installments with a possibility of an early redemption,” the ruling’s note read. The regions should spend the money to fight the coronavirus and on compensation of shortfalls in tax and non-tax revenues.
The budgets of Russian regions will get RUB2bn of subsidies for emergency measures of support of small and medium enterprises ​during the coronavirus pandemic, according to a ruling signed by Prime Minister Mikhail Mishustin and published on the government’s website on Monday. “To allocate RUB2bn to the Economic Development Ministry from the Russian government’s reserve fund for provision of subsidies in 2020 from the federal budget to the budgets of Russian regions for implementation of emergency support measures for the entities of small and medium enterprises under the worsening conditions due to the spreading of the new coronavirus infection,” the ruling read.
President Vladimir Putin instructed his Cabinet to work out the issue of increasing the maximum budget loan for regions with repayment in December 2020 ​by May 20, as reported by ​RIA Novosti​. “The Government of the Russian Federation to consider issues and submit proposals on increasing in 2020 the maximum size of the budget loan provided to the subject of the Russian Federation to replenish the balances on the account of the budget of the subject of the Russian Federation, providing for a repayment period of such a loan in December 2020. If necessary, ensure the introduction of appropriate changes to the legislation of the Russian Federation,” the statement said. The term for the execution of the order is May 20. The Prime Minister of the Russian Federation, Mikhail Mishustin, has been appointed
70​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com