The sharp increase in government spending in 2024 is linked to geopolitics and elections in Russia. This opinion was expressed by Sovcombank’s chief analyst Mikhail Vasiliev in a conversation with socialbites.ca, commenting on the draft federal budget for 2024-2026 approved by the Russian government.
“The first thing we noticed in next year’s draft budget was the significant increase in revenues and expenses. We assumed that 2024 budget revenues will be 30.5 trillion rubles. and expenses – 33.5 trillion rubles. “We assume that the government sees the need to significantly increase government spending next year due to geopolitics and elections,” the expert said.
The Ministry of Finance predicts 35 trillion rubles of income and 36.6 trillion rubles of expenses in 2024.
“Revenues are estimated to be approximately 23% (28.5 trillion rubles) more than we expected this year, and expenses will be 16% (31.6 trillion rubles) more. We think inflation will be 7.5 percent at the end of this year and 5 percent at the end of 2024. “So we see a significant increase in real budget revenues and expenses next year,” he said.
Master of Laws, Associate Professor at the Department of State and Municipal Finance at the Russian University of Economics. GV Plekhanova Mary Valishvili the day before stated socialbites.ca said that the budget deficit for the next three years does not cause concern.
According to the draft budget, revenues are expected to be 35 trillion rubles in 2024, 33.5 trillion in 2025 and 34.1 trillion in 2026. Expenditures are estimated to be 36.6 trillion rubles in 2024, 34.4 trillion in 2025 and 35.6 trillion rubles in 2026. It is planned to allocate 4.4 trillion rubles to unified benefits for families with children, 482 billion rubles to improve housing supply and another 1.6 trillion rubles to pay maternity capital. More than 1 trillion rubles will be spent on the supply of medicines. 111 billion rubles to create new places in schools within three years. It is planned to allocate more than 947 billion rubles to support civilian industry and more than 67 billion rubles to support small and medium-sized enterprises.
Previously happened It is known how the digital ruble can help the budget.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.