The State Duma adopted on Wednesday amendments to the Budget Code that allow the Russian Government to increase expenditures and public debt beyond the limits set by the budget law.
According to the document, submitted by the government at the beginning of the week and approved in an accelerated regime – in all three readings in a single day – the executive will be able to increase expenditures beyond the level of 44 trillion rubles provided in the budget for the current year.
Furthermore, the government will be able to finance the budget deficit “by exceeding the maximum ceiling established for the internal public debt of the Russian Federation”, as stated in the explanatory note of the law.
New skills are necessary for the authorities to be able to respond to the rapid changes in the economic and financial context, stated the Deputy Minister of Finance, Irina Okladnikova, before the vote.
“We need this mechanism to respond to the changes that are happening not every month or quarter, but practically every day,” the official stated.
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