Russian Finance Minister Alexey Kudrin reiterated that the new three-year plan would help stabilize financial policies and achieve sustainable development.
Photo: Dmitry Dukhanin
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Duma Committee OKs Draft Budget
The Duma’s Budget and Tax Committee on Monday endorsed the draft 2008-2010 budget which is to be discussed at the United Russia party on Tuesday. The first reading of the bill is likely to be passed this Friday.
Russian Finance Minister Alexey Kudrin presented the draft three-year budget to the Duma’s budget committee on Tuesday. Mr. Kudrin reiterated that the new three-year plan would help stabilize financial policies and achieve sustainable development.
Under the plan, some of oil and gas revenues will be used to cover budget deficit which will fluctuate between 6.6 percent of the GDP in 2008 to 5.3 percent in 2010. The minister said other industries would spur the Russian economy as authorities would be investing in fixed capital 11 percent more every year, with private incomes growing 8 percent annually.
Duma deputy Vitaly Shuba criticized the budget for the planned decline in the GDP growth rates from 6.5 percent in 2006 to 6 percent in 2010, saying he can see “no economic effect from new tools of budget policy.” Committee member Oksana Dmitrieva added that the budget sees quite a slow growth of salaries for employees of state-owned firms, compared to predicted incomes at private firms.
Responding to the criticism, Alexey Kudrin noted that the new budget gives substantial tax rebates, including VAT. Pay at state-run companies is to rise between 30 and 50 percent within the next three years, according to Deputy Finance Minister Tatyana Golikova.
The committee recommended the State Duma to pass the draft budget in the first reading on May 25, endorsing the budget’s key points.
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All the Article in Russian as of May 22, 2007
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