Abstract
The draft of the federal budget for the coming three years has clear features of the budget for development: it is aimed both at ongoing financing of anti-crisis measures and at the implementation of long-term national projects. Proactive fiscal policy amidst the decrease in tax and non-tax revenues forces implementation of fiscal consolidation measures coupled with slightly raising tax burden on certain sectors of the economy and the wealthy as well improving the “unprotected” expenditure items. It will not be enough to ensure fiscal balance with only these measures and the budget will be in deficit. The government plans to cover the budget gap through internal borrowings. As a result, debt servicing will go up 2-fold in nominal terms. This fact in itself is not critical for maintaining long-term fiscal sustainability, however as long as low oil prices and low economic rates persist possibilities of the state in the implementation of active fiscal policy will be falling.
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