Russia’s Fiscal Policy in 2018

Abstract

In 2018, fiscal revenues of the enlarged government (hereinafter BEG) according to the preliminary data released by the Federal Treasury exceeded the volumes seen in the previous year by 1.9 percentage points of GDP, or by RUB 5,870 billion in absolute terms. At the same time, 75 percent of the income increment of BEG was secured by the federal budget including oil revenues to RUB 3,046 billion, or by 2.2 percentage points of GDP. Non-oil and gas receipts to the consolidated budget of the Russian Federation in 2018 compared to 2017 rose by RUB 2,824 billion in absolute terms but dropped in shares of GDP by 0.3 percentage points. Expenditures of Russia’s budgetary system contracted in 2018 compared to January-December 2017 by 2.6 percentage points of GDP growing in absolute terms by RUB 1,485 billion. In 2018, fiscal revenues of the budgetary system of Russia hit maximum for the five-year period which was mainly due to the favorable price environment on the natural resources. Budget expenditures of the enlarged government in shares of GDP in 2018 on the contrary reached minimum for the five-year period, which was possible due to budgetary rule in force, which significantly limited spending of the federal budget.