Russia to cut its deficit woes by dipping into its savings
- 9 years ago
Russia will dip into its emergency reserve fund to the tune of more than 50 billion dollars to stop its deficit, hit by falling oil prices and a slumping economy, from rising too far, says the finance ministry.
This would mean more than half of the fund disappearing in less than a year, underlining the fragile state of Russia’s public finances.
The budget is currently being revised based on an oil price of 50 dollars a barrel. When originally drawn up it was based on an oil price of 100. 2015 looks likely to leave Russia with a deficit of 3.7% of GDP, compared to the 0.6% shortfall forecast, mainly due to lower tax revenues.
Of particular concern are several Russian banks, already downgraded and whose ratings are vulnerable.
This would mean more than half of the fund disappearing in less than a year, underlining the fragile state of Russia’s public finances.
The budget is currently being revised based on an oil price of 50 dollars a barrel. When originally drawn up it was based on an oil price of 100. 2015 looks likely to leave Russia with a deficit of 3.7% of GDP, compared to the 0.6% shortfall forecast, mainly due to lower tax revenues.
Of particular concern are several Russian banks, already downgraded and whose ratings are vulnerable.