Led by Finance Minister Alexei Kudrin, center, the finance doctors of the country will deliberate on the budget need for surgical operation.
Photo: Vasily Shaposhnikov
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Govt Draws Tight the Budget
Having preferred not to wait for the worst, the government set to the budget revision yesterday. According to Vice Premier and Finance Minister Alexei Kudrin, the cabinet is revising the economic outlooks for the estimated results of 2009, which were taken into account to elaborate the budget of 2010 through 2012. The 2009 budget has actually taken effect and it will be adjusted in the course of implementation.
The formal highlight of the yesterday’s sitting of government was the results of nine-month execution of the budget. But the global economic turmoil hit Russia in September and actual concern of the ministers is to slash the 2010 budget. Part of 2009-2011 budget, the 2009 budget will be revised later, after the anti-crisis meeting chaired by Prime Minister Vladimir Putin that is slated for December 5.
“With regard to revised growth rates of global economy, we will have to make more precise the outlooks for Russia’s economy growth,” Alexei Kudrin announced after the discussion. According to Kudrin, the global economy won’t step up the usual 5 percent next year, gaining no more than 2 percent instead. “The zone of all developed nations, the EU for instance, will have negative dynamics, i.e. the reduction in GDP,” Kudrin said, explaining that “it will affect Russia, the purchase of energy, metals and other products made in the RF.”
In early 2008, Russia’s government counted on the GDP growth of 6.6 percent in 2010, planning the budget revenues to soar from 10.9 trillion ruble in 2009 to 11.7 trillion ruble in 2010. The increase in spending was estimated at 1.3 trillion ruble, from 9 trillion ruble in 2009 to 10.3 trillion ruble in 2010. Yesterday, however, Kudrin made clear to the government that those plans would hardly materialize and the GDP wouldn’t gain more than 3 percent.
Investment projects are the first victims of planned reduction. “Given that the revenues of federal budget and of constituents' budgets will be lower in 2008 and in view of the special situation in certain branches and regions, we have agreed to carry out additional inspection,” Kudrin specified. Funding of signed projects will continue but the expediency of remaining projects will be studied once, the vice premier said.
www.kommersant.com
All the Article in Russian as of Nov. 28, 2008
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