Putin Needs Stashed-Away Money
Not satisfied with the 50-billion ruble increase in budget spending planned for the 2007 budget, President Vladimir Putin spoke with Health and Social Development Minister Tatiana Golikova about spending the so-called stash, i.e. the social spending reserve, in 2007 and 2008. Both the origin and amount of such stash are the top secret, while the abrupt decisions on stepping up social spending for election purposes have become common for the Kremlin and the government.
Yesterday, Prime Minister Viktor Zubkov reported to President Vladimir Putin that the 2007 budget additionally appropriates over 50 billion rubles for social programs. But the amount was apparently too small for the president.
“You have had, as the people say, the certain stash for certain projects. Let’s speak in detail what to do with these funds,” Putin told Health and Social Development Minister Tatiana Golikova, urging her to deliberate on the subject behind closed door.
Golikova, who was the deputy finance minister before the recent promotion, evidently knows about the budget stash as much as Finance Minister Alexei Kudrin does. The minister preferred not to give the details of her talk with the president. The stenograph report released by the Kremlin’s press service by results of the meeting didn’t mention the problem of stash spending. But the news agencies, including ITAR-TASS, reported about it when quoting the president.
The practice of above-the-target increase in budget's social spending is likely to become permanent at least till the presidential elections of 2008. Unlike the political impact, its macro-economical effect is easy to forecast – the growth of inflation pressure, of course.
www.kommersant.com
All the Article in Russian as of Oct. 30, 2007
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