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Govt Preferred Not to Adjust 2008-2010 Budget
Russia’s government approved yesterday a budget draft elaborated for 2008 to 2010. Despite that new initiatives of President Vladimir Putin were the obvious highlight of the cabinet, they failed to materially affect the three-year draft.
Russia’s ministers sanctioned Thursday the budget draft elaborated for three years first time in the country’s history. But instead of deliberating on that core financial document of the country, the cabinet had to focus on devising some methods of executing new orders of President Putin – Russia’s president delivered his annual address to the Federal Assembly yesterday.
The ministers decided to accomplish the better part of president’s initiatives already this year, i.e. for account of 2007 budget. The government will widen its spending by roughly 12 percent in an effort to find money for additional social costs, for capitalization of development institutions and for road construction.
The aftereffects are easy to predict. Inflation may surpass the 2007 target of 7.5 percent to 8 percent, Finance Minister Alexey Kudrin forecasted yesterday, never doubting, however, that they “wouldn’t have the surge in spending and would be able to control macroeconomic policy and monetary and credit policy.” But “the problem of money supply and sterilization is still of great concern,” the minister warned.
www.kommersant.com
All the Article in Russian as of Apr. 27, 2007
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