Media: the Ministry of Finance proposed to devalue the ruble by ten percent – RIA Novosti

13:1931.01.2017

(updated: 13:59 31.01.2017)

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MOSCOW, 31 Jan — RIA Novosti. the Russian Ministry of Finance proposes to devalue the ruble by about ten percent, writes “Kommersant” with reference to data published by Reuters.

the Agency has made calculations on the main parameters of the budget, including the proposed adoption of a budgetary rule. It suggests that if oil and gas revenues will be higher than the calculated when the average oil price of $ 40 per barrel, the “surplus” will go to the Reserve Fund and national welfare Fund. The Ministry of Finance suggests that the transfer of additional income to reserves will not only create a “safety cushion”, but will prevent excessive strengthening of the ruble.

According to new calculations of the Ministry of Finance, when the cost of oil average annual exchange rate should be 69,42 rubles per dollar, and the Federal budget deficit 3.1% of GDP. The same expenditure of reserve funds will reach 1.8 trillion rubles.

Under the current oil price of 55 dollars per barrel, the budget deficit without the use of fiscal rules is one and a half percent of GDP, and the spending of reserve funds to 464 billion rubles. If it acts the declared mode of constant purchase of reserves in Treasury bills, a deficit of 0.7 percent of GDP in the reserve Fund will be invested 241 billion rubles, but the ruble should weaken by about ten percent, and the rate will be 64.9 ruble to the dollar.

the Department believes that without applications the budget rules and without the devaluation of the ruble, the budget is balanced only when the price of oil $ 76 per barrel. However, if the weakening of the national currency will be managed, zero deficit can be achieved at a price of about 61 USD.

the Ministry of Finance plans to submit a new budget rule to the state Duma this year. It is assumed that it will work in 2020.