Medvedev: individual spending items may be increased only through reallocation
GORKI. July 20 (Interfax) - Increasing the maximum spending limits on individual budget items is highly unrealistic and would only be possible by reallocating resources or, in exceptional cases, using reserves, Prime Minister Dmitry Medvedev said.
"The Finance Ministry has already provided the limits to the profile government bodies. Naturally, the ministers have their own ideas and proposals concerning additional finances. We will discuss them today. Although I want to give a warning immediately that all proposals concerning additional budget allocations at present are highly unrealistic, but we can discuss the issue of reallocating resources, and if necessary this really is possible. Or, in exceptional cases, the reserves could be used, if we have a final decision for that," Medvedev said in opening remarks at a meeting on federal budget spending in 2017 and the 2018-2109 planning period.
The government has already set the maximum limits of budget spending in 2017-2019 at 15.785 trillion rubles a year (in nominal terms). The budget deficit is projected at 3.2% of GDP in 2017, 2.2% in 2018 and 1.2% in 2019.
Concerning spending on industry, Medvedev said the government had formed a system of support measures, notably the Industry Development Fund, the Agency for Technological Development, and support for small and medium enterprises (SME) and import substitution. "A number of steps were undertaken as part of government activity in 2016, the possibility of lowering the tax burden on those who invest in modernizing production, certain steps were undertaken for those industrial sectors, whose development has the greatest positive effect on associated industries. The first results are that in the first half of the year, the decline in industry has halted, which is pretty good given the current conditions, and although the situation is very heterogeneous, marked growth can be seen in some segments," Medvedev said.
