Output has rebounded strongly and is now above the pre-crisis level in Russia. Inflation pressure stemming from the ruble depreciation has been reigned in and inflation has been brought down. The paper contains a detailed description of developments in the enlarged government budget, including the main determinants of revenue performance. It also describes the main elements of the recent tax reform and provides an overview of outstanding structural issues in the fiscal sector. The new government has proposed a set of far-reaching tax policy reforms.
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