The Russian government spent 53% of the budget for officials, law enforcers and buying currency


Photo from banki.ru

The Federal budget of the Russian Federation eats the remains of the Russian economy.

The Federal budget of Russia transformed into a “black hole” that sucks the remains of the national economy, converting them into foreign currency, tanks and welfare officials, reports finanz.ru.

By the end of 2018 dues to the Treasury jumped by 29%, or 4.3 trillion rubles, reported the Ministry of Finance on Tuesday.

The Federal taxation service exceeded the plan by 2.4%, or 283 billion rubles, customs failed to collect 2.1% more orders – of 6.06 trillion rubles instead of 5,937.

Oil and gas revenues following the prices for hydrocarbons soared by 1.5 times – from 5,972 to 9,018 trillion rubles.

Of the non-oil sector of the economy managed to squeeze out 14% more – 10,437 trillion rubles.

In sum, the Ministry of Finance has collected 19,454 trillion rubles. Of this amount, more than half – 53%, or 10.2 trillion rubles was spent on buying foreign currency, funding the army, police and government officials.

On foreign exchange intervention, in which the Ministry of Finance of the Russian Federation buys dollars, euros and British pounds on revenues from oil is more expensive 40 a barrel, was spent 4.2 trillion rubles. Investment in foreign currency “ate” not only the budget surplus (2,746 trillion roubles), but also of 1.47 trillion roubles.

Financing of public authorities increased by 87 billion roubles to 1,254 trillion rubles.

The power structure in the amount received 4,796 trillion 26 billion rubles more than in 2017.

Priorities, however, has changed. The financing of the army was reduced to 26 billion rubles, or 0.9% (to 1.97 trillion rubles), and the police Rohvadze and other bodies of internal security – has increased by 52 billion, or 2.7% (1,918 trillion rubles).

Radical reduction have undergone article focused on social security of the population: compared with 2017 the year of their total cut to 410 billion roubles, or 8.2% (4,582 trillion rubles).

Pension costs, which in Russia is only half paid by the FIU, and the other half provides the Federal budget were reduced to 434 billion, or 12%.

With a sharp jump in the revenues of the Federal budget expenditures haven’t increased – they made up 16.7 trillion roubles against 16,42 trillion in 2017 year.

In relative terms, budget spending has collapsed to historic lows – they accounted for only 16.4% of GDP, says the Director of analytical Department of “Loco-invest” Cyril Tremasov.

In 2014-16gg, this indicator was at the level of 19-20% of GDP below 18% of GDP never fell, he recalls.

“Highly rigid fiscal consolidation implemented in 2017-18gg became a key factor in low growth, falling real incomes and sharply increased differentiation (inequality) of incomes”, – said the expert.

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