THE STATE BUDGET IN JANUARY-MAY 2014

According to the data provided by the Federal Treasury of Russia, federal budget revenues increased 1.2 p.p. of GDP in the period of January to May 2014 compared to the corresponding period of the previous year. Consolidated budget revenues of the constituent territories of the Russian Federation in January to April 2014 contracted by 0.2 p.p. of GDP relative to the four months in 2013. At the end of the period of January–May of the current year the federal budget ran a surplus of 1.4% of GDP; in addition, a positive balance was reached as a result of the execution of the consolidated budget of the constituent territories of the Russian Federation as 1.6% of GDP. Late in May 2014 the Government of Russia submitied to the State Duma a draft law1 providing for the adjustment of the key parameters of the 2014 federal budget. In particular, the forecast of GDP volume was downgraded from Rb 73,315bn to Rb 71.493bn (-Rb 1. 822bn) due to the weakening of the investment demand, reduction in inventories at enterprises, slowdown in the consumer spending and export.