| Other Photos |
 |
|
 |
Adjusted Budget Reaches Govt
Russia’s Finance Ministry forwarded the 2008-2010 draft budget to the government yesterday. A month’s effort of the ministry trimmed the budget revenues but failed to halt spending growth.
Finance Minister Alexey Kudrin submitted the three-year draft budget to the government Monday. The ministers will discuss the draft April 26 and it will be presented to the State Duma April 30.
The 2008 budget revenues are estimated at 6.644 trillion rubles, and the spending forecast is 6.570 trillion rubles. First time in Russia’s history, the budget separates revenues generated from raw product and other revenues and spells out procedures for oil/gas transfer.
Nevertheless, the core target – sticking to tough budget policy – hasn’t been attained, though finance minister used exactly this argument to justify the need of shifting to the so-called non-oil/gas budget of the country.
The spending has surged even since March 22, when the government sanctioned the budget guidelines, and despite the downgraded forecast for revenues. The 2008 spending forecast stepped up 70 billion rubles, while the revenues lost 29 billion rubles at the same time.
The reason of revenues decline, Kudrin said in the cover letter addressed to PM Mikhail Fradkov, was the adjusted social and economic outlook of Economic Development Ministry. Following German Gref’s proposal, the forecasted growth in GDP was downgraded from 6.5 percent to 6.1 percent for 2008, lowering Finance Ministry’s estimate for oil and gas revenues by 82 billion rubles.
When it comes to extra spending, of 16 submitted applications, Finance Ministry turned down only two bids, including for buying two Tu-214 planes, counting on the Future Generation Fund to cover the increase. In additional effort, Kudrin increased non-oil/gas transfer by 25 billion rubles and widened Reserve Fund by 13 billion rubles.
www.kommersant.com
All the Article in Russian as of Apr. 24, 2007
|
|
|
