Russian budget to be short of $94bn in next 3 years, ex-minister says

PanARMENIAN.Net - Russia’s ex-Finance Minister Alexei Kudrin said the country’s budget income is likely to be short of three trillion rubles ($94 billion) in the next three years due to the slowdown in the economy’s growth.

“The risk zone is over three trillion rubles taking three years [2014-2016] on the aggregate,” said Kudrin, who attended the World Economic Forum in Moscow on Sunday, Oct 20, according to RIA Novosti.

The former finance minister also said that this year’s economic growth will be below the earlier forecasted 1.8 percent and will stand at 1.6 percent.

“Our growth potential for 2014 is around 2 percent, but may be even lower,” Kudrin said adding that in the next five years the annual economy’s growth will not be exceeding the mark of three percent.

The government draft budget for 2014-2016, which is pending review in the State Duma, was criticized last week by the Audit Chamber for its forecast of annual economic growth of 3.3 percent.

The watchdog said the forecast ignores risks to fixed investment into the Russian economy. It also says revenue from oil and gas, value-added and corporate taxes, privatization of state enterprises and domestic borrowing may all be lower than expected in the draft.