Russian President Vladimir Putin signed a law giving the government the right to use funds from the National Welfare Fund (NWF) in 2021 in excess of the amount budgeted for in the event of a fall in oil prices.
According to the document published on the official portal of legal information, amendments are being made to the Budget Code of the Russian Federation.
The adopted norm will allow, if necessary and as a measure of a prompt response, to use the funds of the NWF to cover the lost oil and gas revenues of the federal budget, as well as to fulfill the assumed expenditure obligations.
It is noted that, in the main areas of budgetary, tax and tariff-customs policy for 2021-2023, the Ministry of Finance will send about 100 billion rubles from the NWF to cover the budget deficit over these three years. Most of all will be spent from the fund to cover the deficit in 2021 - 95 billion rubles. In 2022 and 2023, the amount will be 3.8 billion rubles each.
In addition, the law changes the rule governing the procedure for calculating the total volume of federal budget expenditures. The estimated volume for 2021 is increasing from 585 billion rubles to 1 trillion 460 billion rubles. This will ensure the gradual adaptation of the budget to the new macroeconomic conditions and will allow continuing to take the measures necessary to restore the economy and the real incomes of citizens. From 2022, marginal costs will be determined in accordance with budgetary rules.
In addition, the law provides for the distribution of a part of the personal income tax payable if income exceeds 5 million rubles, according to the following standards: 13% to the federal budget, 87% to regional and local budgets.
It is also envisaged to increase the amount by which the total volume of federal budget expenditures can be increased without amending it, from 1.8 trillion to 2 trillion rubles. This is possible with the redistribution of budgetary allocations for financial support of measures to prevent a negative impact on the development of sectors of the economy when the economic situation deteriorates, as well as to prevent and eliminate the consequences of the spread of coronavirus.