Russia`s upper house of parliament approved Wednesday the first three-year budget seen as a transition to longer-term financial planning and designed to streamline finances and expenditures.
In 2008, revenues are set at 6.6 trillion rubles ($259 billion), or 19% of Gross Domestic Product, and expenditure at 6.6 trillion rubles ($259 billion), 18.8% of GDP. Surplus is expected to be 74.1 billion rubles ($2.9), or 0.2% of GDP.
In 2009, the figures are planned at 7.5 trillion rubles ($291 billion) and 7.4 trillion rubles ($290 billion) respectively. And in 2010, both revenue and spending are expected at over 8 trillion rubles ($315 billion).
GDP growth in 2008-2010 is forecast in the budget at 6-6.2% a year. In 2008, GDP will be 35 trillion rubles ($1.4 trillion), 39.7 trillion rubles ($1.5 trillion) in 2009, and will reach 44.8 trillion rubles ($1.7 trillion) in 2010, according to the budget.
Inflation is expected to fall from 6-7% in 2008 to 5.5-6.5% in 2009, and 5-6% in 2010. The average dollar rate is forecast at 25.9 rubles per dollar in 2008, 26.2 rubles in 2009 and 26.8 in 2010.
The Reserve Fund - from next year part of the Stabilization Fund cushioning the federal budget in the event of an oil price plunge - will amount to 3.5 trillion rubles ($136.3 billion) in 2008, 3.9 trillion rubles ($154.6 billion) in 2009, and 4.5 trillion rubles ($174.5 billion) in 2010, the budget says.
On national defense in the next three years, the state will allocate 509.1 billion rubles ($19.8 billion), 566.7 billion rubles ($22. billion) and 596.1 billion rubles ($23.2 billion) respectively. The security sphere will receive 521.8 billion rubles ($20.3 billion), 642.6 billion rubles ($25 billion), 693.5 billion rubles ($27 billion).
Funding for education in 2008-2010 is envisioned at 306.7 billion rubles ($11.9 billion), 313.6 billion rubles ($12.2 billion), and 339.8 billion rubles ($13.2 billion). Healthcare and sports will receive 211.6 billion rubles ($8.2 billion), 245.2 billion rubles ($9.5 billion), and 295.3 billion rubles ($11.5 billion) in the next three years respectively.
The speaker of the State Duma, which is rounding off its spring session Friday, said improving living standards in the country was the budget`s main focus.
"We have done everything to ensure a period of sustainable growth in key areas - economy and welfare," said Boris Gryzlov, also the leader of the Kremlin-backed United Russia party, which dominates the house.
The budget envisions a rise in the minimal wage from 2,300 rubles ($89) to the subsistence level, which currently stands at 5,120 rubles ($200) per capita, by early 2011, and the use of Stabilization Fund money to offset the pension fund deficit. Average pensions are expected to increase to 5,105 rubles (about $200) by 2010, 1.7 fold on the current levels.
sections: Politics |
Russian News
[View all comments]
[Print]
