Finance Minister Alexey Kudrin appealed to Soviet values in vain. State Duma ratified the 2007 budget in the atmosphere of general discontent.
Photo: Dmitry Dukhanin
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Budget-2007 Ratified by Dissatisfied Majority
// Alexey Kudrin returned to Soviet times
Russian State Duma criticized the 2007 draft budget, but then ratified it in the first reading. 340 deputies voted for, and 67 – against. The budget proposes a considerable growth of expenditures alongside problems with tax administration and the depletion of export-oriented development model.
Finance Minister Alexey Kudrin said “this is the budget of investment into man, and its strategic priorities are to increase living standards.” The government plans to double the amount of investment by 2009 owing to the creation of free economic zones, venture and investment funds.
Expenses on supporting national economy, regions, education, and health care are doubled. Kudrin said that by 2007 “Russia’s lost GDP and industrial potential of 1990 will be completely restored due to the policy of last 4 or 5 years”.
However, Duma deputies criticized the budget. Yet, it was ratified in the first reading by the qualified majority of dissatisfied deputies. Experts also point out some contradictions in the budget. For instance, it stipulates for a considerable increase of non-interest expenses (from 15.2 percent of GDP in 2006 to 17 percent in 2007). Experts conclude there are serious risks in the budget’s revenue part.
Irina Granik
All the Article in Russian as of Sep. 25, 2006
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