Russian Duma passes 2024 budget amendments at third reading

MOSCOW. July 4 (Interfax) - Russia's State Duma passed amendments to the 2024 federal budget at their second and third reading on Thursday.

The government introduced the bill (No. 639656-8) to the lower house of parliament on June 3.

The only new amendment for the second reading concerns the allocation of an additional 650 million rubles for subsidies to educational organizations in CIS countries. This is to finance Slavic universities in CIS countries, said Andrei Makarov, chairman of the Duma's Budget and Taxes Committee.

"We have in our time decided to increase funding for our joint universities in the CIS countries, and we have talked about this, that we should do all we can to put the conditions and opportunities in place for the study of the Russian language in these countries, our culture, traditions, so that people who come here know the language," said State Duma Speaker Vyacheslav Volodin, who penned the amendment.

According to the document adopted in the second and third readings, total federal budget revenues for 2024 will decrease by 2.8 billion rubles or 0.01% to 35.063 trillion rubles or 18.3% of GDP. Spending increases by 522 billion rubles or 1.4% to 37.183 trillion rubles or 19.4% of GDP. The federal budget deficit widens by 524.7 billion rubles to 2.12 trillion rubles or 1.1% of GDP instead of the previously approved 0.9% of GDP.

Oil and gas revenues in 2024 will decrease by 519 billion rubles to 10.985 trillion rubles, while non-oil and gas revenues will rise 516.2 billion rubles to 24.077 trillion rubles.

Anticipated oil and gas revenues will fall due to a reduction in forecast excess profit tax on hydrocarbon production, mineral extraction tax on natural gas, customs export duties on hydrocarbons as well as an increase in excise refunds for petroleum feedstock for processing. Certain oil and gas revenues will increase due to higher mineral extraction tax receipts for oil and gas condensate.

The bill reflects 173.1 billion rubles of revenues that were not previously forecast, of which 105.3 billion rubles from the transfer of a portion of Central Bank of Russia profit for 2023, other non-tax income by way of compensation related to production sharing agreements totaling 51.6 billion rubles and windfall profit tax of 5.1 billion rubles.

The new budget parameters assume GDP for the year will be 191.437 trillion rubles and inflation 5.1%, the previous forecasts being 179.956 trillion rubles and 4.5%.