Ministry of Finance: Russian economy is recovering faster than government forecasts

The recovery of the Russian economy is following a more “rosy” trajectory than the government predicted, said Deputy Finance Minister Vladimir Kolychev. He said that the proceeds of the main taxes in Russia in real terms increased by 5-10% in two years.

“In terms of revenues as a whole, we see that economic recovery – this was observed in the fourth quarter of last year, and in part in the third – is following a more“ rosy ”trajectory than our forecasts, the government’s forecast,” Mr. Kolychev told reporters (quoted by TASS).

“We see from non-oil and gas revenues – oil and gas is a different story, quite vigorous growth, even if we compare it with 2019, when the pandemic did not affect budget revenues in any way – that in real terms our main taxes are growing by 5-10% annually, that is, 2021 in relation to 2019, taking into account that two years have already passed, by 5-10% in real terms, taking into account inflation, “the deputy minister added. He clarified that we are talking about VAT, income tax, salary taxes, personal income tax, insurance premiums and income tax.

According to him, the budget deficit this year will be less than 2.4% of GDP. “Yes, naturally less – just because oil prices are different, this is such a counting factor. Now the prices are not what such a deficit might be, ”explained Mr. Kolychev. Earlier, the Ministry of Finance announced that the export duty on Urals oil from June 1 will increase by $ 3.9 and amount to $ 58.8 per ton.

According to the head of the Ministry of Economy, Maxim Reshetnikov, the country’s economy will return to the level it was before the coronavirus pandemic in the third quarter of 2021, and by the end of the year it will be possible to enter the trajectory of “sustainable growth at a rate of at least 3%.”

Read more about the recovery – in the material of “Kommersant” “The economy emerged from the pit of the crisis.”

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