Marcel Salikhov, Director of the Center for Economic Expertise, National Research University Higher School of Economics, commented on the decline in the share of oil and gas revenues in the federal budget in 2020 to Izvestia.
The share of oil and gas revenues fell from 39.3% in 2019 to 28% in the past crisis year - such data was presented by the Accounts Chamber in the report on the federal budget implementation for 2020.
The main factors that led to this situation are decline in world prices for oil and gas, as well as the limitation of production, says Marcel Salikhov, Director of the Center for Economic Expertise at the Higher School of Economics. However, in the short term, the expert predicts a gradual decline in the share of oil and gas revenues.
“Firstly, Russia is not expected to see significant growth in production and export of hydrocarbons in comparison with current potential levels. Secondly, due to the fact, that production is shifting towards new, more complex fields. There, as a rule, more attractive tax conditions are applied. This will lead to decreasing the effective level of taxation of the oil and gas sector,” Salikhov concludes.
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