Medvedev Says Reserve Fund Will Not Be Exhausted
Russian Prime Minister Dmitry Medvedev is confident that the reserve fund will not be exhausted in 2017, contrary to some forecasts, he said in a report addressed to the State Duma on Wednesday.
“We manage to keep the budget deficit at an acceptable level. The reserve fund is our main source for covering it. In theory, it should have been depleted by the end of this year, but this will not happen,” Medvedev said. According to him, there are enough funds, Tass reported.
“We are setting up a system of all budget payments so that it is more efficient,” the premier explained.
Medvedev also said there are no plans to raise taxes this year. “Several years ago a decision was made to ensure stability of the tax system, which is why there will be no tax increases this year,” he said.
Earlier this week Medvedev said at a meeting with President Vladimir Putin that the government has managed to keep a moratorium on tax increases despite serious economic implications over the past few years.
According to Medvedev, the cabinet is also preparing proposals regarding the development of Russia’s tax system for the future.
Russia’s economy is developing despite conservative expectations, Medvedev said. “The economy is developing despite previous expectations of catastrophe,” he said, adding that the challenges the country’s economy has been facing due to sanctions and lower oil prices have become a new trigger for growth.
Meanwhile, the International Monetary Fund upgraded its forecast on Russia’s GDP growth from 1.1% to 1.4% in 2017 and from 1.2% to 1.4% in 2018 in its new report released on Tuesday.
The IMF also revised downward its outlook on Russia’s GDP decline last year from 0.6% to 0.2%.