Accounts Chamber considers expected income of budget of Russian Federation overstated by $34.5 billion

Accounts Chamber considers expected income of budget of Russian Federation overstated by $34.5 billion
Photo: Izvestia

The overstated expectations are tied to dividends and income of companies partially owned by the government.

Over the next 3 years, Russia’s budget is likely to receive 2.2 trillion rubles ($34.5 billion) less than it had been expected, reports Izvestia with reference to 2018 report by the Accounts Chamber.

According to the report, the variance from forecast is expected to be 650 billion rubles ($10.1 billion) in 2019 - with 700 billion rubles ($10.9 billion) in 2020 and 875 billion rubles ($13.7 billion) in 2021. Over the next 3 years, Russia’s budget is going to be surplus. The overstated expectations are tied to dividends and income of companies partially owned by the government.

The risk of the shortage is tied to inaccuracy of forecasts of budget income from the main administrators of the income - government entities responsible for gathering for the treasury. The Tax and the Customs service controlled by the Ministry of Finance are related to them.

Besides that, there’s a risk from appearance of standards that would reduce the treasury revenues. Earlier, there had been prohibition against introduction of laws after the main financial document was accepted. However, it was stopped for 9 years.

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