1 Jun 2010 13:34

Govt could submit 2010 budget amendments to Duma in June

MOSCOW. June 1 (Interfax) - The Russian government plans to submit draft amendments to the 2010 federal budget to the State Duma in June, Deputy Prime Minister Alexei Kudrin, who is also the country's finance minister, told reporters.

"We're rounding off work on the amendments and adjusting tasks and priorities," Kudrin said.

Some budget spending will be reduced and some will be increased, he said. The government plans to save 100 billion rubles in funds originally budgeted to recapitalize banks using federal loan bonds (OFZ), while the Pension Fund's deficit is expected to be larger than anticipated.

The government plans in the next few days to decide on the possibility of lowering interest on subordinated loans issued to banks via Vnesheconombank (VEB), using National Welfare Fund assets. Kudrin said the Finance Ministry was looking at the situation in the banking sector.

Work is still in progress to adjust export duty rates on East Siberian oil. "This work is being rounded off and a deep analysis is under way," Kudrin said. The debate is about the cut-off price that the new rates will be based on, he said. The Finance Ministry would like the new rates to enter effect on July 1, 2010, but some extra time has been allowed to finalize the proposals, Kudrin said. The problem needs to be addressed in detail, so the timing of the new rates is of secondary importance, Kudrin said.