VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Vladimir Putin's speech:
Good evening, esteemed colleagues.
Today a new press centre was opened in the government's building. I would like to congratulate the journalists that are involved in covering the Russian government's activities on this event. I hope that working there will be comfortable for you.
We will have to approve the major features of the federal budget for 2011 as well as coordinate the issues that have come up when preparing the draft budget during today's meeting of the Commission on Budgetary Planning.
I want to remind you once again that the primary aim of budget policy is to return to a balanced budget and thus retain macroeconomic stability.
The budget income is expected to be 8.6 trillion roubles, with budget spending at 10.4 trillion roubles in 2011. Therefore, the deficit is set to be reduced to 3.6% of the GDP, while the deficit for 2010 is expected to be about 5%. I would like to stress that at first we planned the budget in accordance with the deficit for 2010 standing at 6.8%, but I believe that it will be even less than 5% this year.
In terms of budget spending priorities, they will remain unaltered. We will ensure that the social obligations of the government are fulfilled and pay particular attention to the programmes connected with modernizing the economy and developing high technologies. On this subject I can say that in 2011 pensions will grow by 9% compared to the basic one of 2010. The old-age retirement pension will increase to 8,780 roubles, while the social pension will rise to 5,050 roubles. And the major increase is set to take place on February 1 of next year.
Some funds were allocated to the budget to increase the wages of military officers and law enforcement officials and to increase funds given to federal budget institutions and student grants by 6.5%.
Also, the parameters for financing regional programmes for modernising health care were approved as well. As we expected, the total amount for this will be 460 billion roubles, and 215.9 billion roubles will be allocated to the subjects of the Russian Federation in 2011.
Besides this, 156.8 billion roubles is expected to be allocated to support the National Health Project.
Some 375 billion roubles will be allocated to support healthcare, which is 10% more than in 2010.
Some 218 billion roubles will be distributed to provide housing to military officers, veterans, northerners and others. We have also made a decision to transfer 15 billion roubles to the Housing and Utilities Reform Fund. They have a lot of work to do to conduct major repairs and move citizens out of hazardous housing. And the fund's activities should not be prematurely halted.
We will allocate 180 billion roubles to support the agricultural industry, with some 118 billion roubles distributed under the applicable state programme. This year the figure stood at 107 billion. This will help us strengthen the progress we managed to achieve in the industry and support the farms which have experienced difficulties in connection with severe weather conditions and droughts.
Esteemed colleagues,
As you remember, we had to reduce income taxes, taxes for small businesses and many others. Oil and gas companies experienced significant concessions as well.
We will continue to improve the tax system. Innovative businesses and companies using energy-saving technologies will get additional preference.
At the same time, the government must obviously possess the corresponding funds to fulfill the plans that have been announced, improve the quality of work in hospitals and clinics, construct housing and solve other urgent tasks.
But we have no right to get involved in borrowing excessively. Our recent history and the current examples of some foreign countries have shown us how such reckless policy may end.
We find it unreasonable to increase taxes, taking into account that pensions and other social contributions will rise in 2011. However, we find it possible to increase the financial burden on those economic sectors which have enjoyed low tax rates for a long time and which enjoy high global prices. The revision of tax rates will be connected with the growth of budget spending in the priority areas that have already been mentioned.
These are the factors the government took into account when making resolutions on increasing taxes for mining operations and a number of other fees levied from oil and gas companies. At the same time, some benefits connected with the development of new fields, especially those demanding high capital expenditures, will remain unchanged.
So let's start working and continue on to discussions.
