22 Sep 2009 13:23

Russian govt submits 2009 budget amendments to State Duma

MOSCOW. Sept 22 (Interfax) - The Russian government has submitted amendments to the 2009 budget and the 2010-2011 planning period to the State Duma, according to the Duma's database.

The government presidium approved the bill at a meeting on September 10.

The amendments increase federal budget spending in 2009 by 152.99 billion rubles or 0.4% of GDP to 9.845 trillion rubles (24.2% of GDP). The increased spending will add to the deficit, which will rise to 3.131 trillion rubles or 7.7% of GDP, up from the planned 2.978 trillion rubles or 7.4% of GDP.

The additional spending includes plans to recapitalize the bank sector with federal loan bonds (OFZ) totaling up to 150 billion rubles that will be exchanged for preferred stock in the banks.

Deputy Prime Minister and Finance Minister Alexei Kudrin said previously that most likely less than the entire 150 billion rubles would be utilized.

The amendments also redistribute 141.77 billion rubles among various spending items due to savings in some areas.

Specifically, 10.36 billion rubles will be allocated to the budget's public statutory liabilities, 70.88 billion rubles will go to support the real sector of the economy, 29.44 billion rubles for transfer payments to individual socioeconomic categories of the population, 14.7 billion rubles to cover the deficit in the Social Insurance Fund and 8 billion rubles to budget investments.