Russian Budget Revenue Will Drop to 12,9% of GDP in 2023
OREANDA-NEWS. A gradual decline in budget revenue, even taking into account all proposals by MinFin on corporate and individual taxation, will lead to federal budget deficit in 2014 and the need to boost borrowings.
Finance minister Alexei Kudrin said that according to the ministry's estimates, federal budget revenue will drop from 23.6% of GDP in 2007 to 12.9% of GDP in 2023.
Such an estimate is given in the draft budget strategy up to 2023 which the Finance Ministry is to submit to the budget within a week. "We are entering a major period of lower federal budget revenue" – Kudrin believes. Real DGP growth is projected to rise 2.7-fold in 2009-2023, while crude output is to advance a mere 7% and gas output by 28%.
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