Russian govt approves draft federal budget for 2010-2012
MOSCOW. Sept 23 (Interfax) - The Russian government has approved a draft law on the federal budget in 2010 and the planned period of 2011-2012, Deputy Prime Minister and Finance Minister Alexei Kudrin said at a briefing on Wednesday.
"The budget has been approved and will be submitted to the State Duma by October 1," he said.
Under the draft law, budget revenue will total 6.95 trillion rubles (16.1% of GDP) in 2010. Oil and gas revenue is to grow 14.2% to 3.195 trillion rubles, while non-oil and gas revenue is to decline 4.1% to 3.755 trillion rubles.
Expenditures are to total 9.887 trillion rubles (22.9% of GDP) in 2010. The budget deficit is to amount to 2.937 trillion rubles (6.8%).
Kudrin told the briefing that Russia would allocate 1.832 trillion rubles from the Reserve Fund and 413.5 billion rubles from the National Welfare Fund to finance the budget deficit in 2010.
Budget expenditures on some spheres will be reduced by 4%-5% or more in 2010 compared to 2009, but will be higher than the pre-crisis levels of 2009 for all spheres, he said.
As examples, Kudrin said spending on national defense would increase 20.4% in 2010 compared to 2008, on national security and law enforcement - 27.1%, on education - 12.3%, on culture - 21.7% and on healthcare and sport - 19.6%. Inter-budgetary transfers for Russia's constituent regions will increase 2.7% in 2010 compared to 2008, while subsidies to the national economy will rise 31.4%.
Overall government expenditures will increase in 2010 compared to 2009 despite a 20% reduction in spending on state management, he said. The servicing of state debt will increase due to the start of state borrowing, while spending on Olympic facilities will also increase. Spending on international cooperation will also increase as a result of the ruble's devaluation, he said.
In 2011, budget revenue is to total 7.456 trillion rubles (15.5% of GDP). Oil and gas revenue is to increase 3.7% to 3.319 trillion rubles in 2011, while non-oil and gas revenue is to rise 10.3% to 4.144 trillion rubles.
Budget expenditures are to amount to 9.39 trillion rubles (19.5% of GDP) in 2011 and the budget deficit will total 1.934 trillion rubles (4%).
Revenue is to amount to 8.07 trillion rubles in 2012 with oil and gas revenue rising 5.8% to 3.503 trillion rubles and non-oil and gas revenue increasing 10.2% to 4.567 trillion rubles.
Expenditures are to total 9.981 trillion rubles (18% of GDP) in 2012 and the deficit is expected to total 1.611 trillion rubles (3%).
The draft budget is based on a forecast for Russia's socioeconomic development in 2010 and the planned period of 2011-2012. Under the forecast, Urals oil will trade at $58 per barrel in 2010, $59 in 2011 and $60 in 2012.
GDP is to grow 1.6% in 2010, 3% in 2011 and 4.3% in 2012. In nominal terms, GDP is to amount to 43.187 trillion rubles in 2010, 48.072 trillion rubles in 2011 and 53.712 trillion rubles in 2012.