The Ministry of Finance announced a reduction in the cut-off price in the budget rule to $50 per barrel.

The Russian Ministry of Finance has formed a budget based on the oil cut-off price of $50 per barrel. This was announced on September 21 by the head of the department Anton Siluanov at the XI Moscow Financial Forum (IFF).

"We have now formed a budget based on the cut-off price of $50 per barrel. Everyone says, why is there so little? Although in fact it is not small. This money could be used for expenses. But wait, we must not let down the budget, create risks," he said.

He noted that the agency advocates new expenses if they give a specific economic effect. In particular, additional investments should either increase the incomes of citizens, or help businesses attract more of their own funds and eventually contribute to economic growth.

Siluanov stressed that the Ministry of Finance does not support expenses that do not give an understandable result. When making decisions, the agency also evaluates their impact on the overall budget balance, the financial market and the fulfillment of government obligations.

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On September 19, the Russian government introduced changes to the procedure for developing a budget forecast in order to improve the quality of long-term budget planning. According to the document, the preparation and refinement of the budget forecast is now synchronized with the timing of budget projections. This will ensure the planning of basic budget allocations for a long period.

Russian President Vladimir Putin said on September 17 that Russia expects an increase in oil and gas budget revenues in the coming months. At the same time, the head of state noted that cautious forecasts are used when forming the budget. In particular, the price of oil is set at $50 per barrel. By the end of the year, the federal budget deficit is expected to reach about 2%, while non-oil and gas revenues have increased by more than 18% in eight months.