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
"A total of 150 billion roubles will be allocated for additional capitalisation of banks. Another 142 billion roubles will be spent on the resolution of other urgent problems. Out of this sum, 28 billion roubles will be spent on building and buying housing for servicemen. All in all, 71 billion roubles have been allocated for projects in the nuclear industry and aircraft building. In addition, 6.3 billion roubles have been appropriated for the conduct of purchasing and trade interventions in the markets of agricultural produce with a view to creating conditions for their work. These are not only additional expenses but also the funds that could be redistributed without prejudicing the implementation of the programmes for which they had been initially reserved."
“We will stimulate subsidies to balance the budget. Their size will depend on the current share of severance tax revenues in the budget of each particular region. The decision will concern 32 regions, and we will work with each of them separately to balance their budgets. Also, all revenue from the management of the assets of the Reserve Fund and the National Welfare Fund will be transferred to the federal budget from January 1, 2010. In addition, the share of profit which the Bank of Russia will be obliged to transfer to the federal budget will be increased from 50% to 75% in the next three years.”
“We propose transferring the severance tax (mineral production tax) to the federal budget in full beginning next year. At present, 95% of the severance tax is transferred to the federal budget and 5% to the budgets of Russia's constituent entities. In the past, we permitted that minor deduction to the regional budgets, but the decision to transfer 100% of the severance tax to the federal budget will increase it by at least 46 billion roubles in 2010.”
“As you know, we intended initially to keep next year's budget deficit under 5-5.5%. However, there are low-income population groups who need support-pensioners, disabled persons, and others. There are also commitments to some economic sectors-in particular, the state-financed ones, which we must keep. There are also pivotal national priorities-defence, security, the innovation economy, which also need support. So we have deemed it necessary to raise the budget deficit to 7.5%.”
“7.5% is the highest permissible deficit. If the Government, the Finance Ministry or any other agency, or State Duma or Federation Council members think priorities should be shifted in the budget draft submitted by the Government, it should be done not by increasing the deficit but through redistribution of expenditures. Setting priorities is an essential part of our joint efforts.”
“We have to retain the preset rate of funding at this year's level, and even increase it slightly, despite the crisis. In the process, regrettably, we are going to come across problems caused by the deficit. And here our actions must be as responsible as possible. We must not upset national macroeconomic stability.”
“I would like to stress once again that within the context of the financial crisis and the budget deficit, we are, essentially, taking an unprecedented step in the social sector: we are raising pensions. No one else is doing this, no one. It is also vital that we guarantee wages in the public sector, that we pay benefits and provide pharmaceuticals for pensioners and disabled. High-tech medical support will not be forgotten, nor will support for modern educational centres, or housing programmes. Let me add that the allocations for social policies in 2010 will increase by more than 10%.”
“Regarding the deficit, this as I said, will amount to 3.2 trillion roubles in 2010 or 7.5% of our GDP. There is no doubt that we can find the funds to cover it. However, I should tell you directly that this is the maximum deficit that we can allow ourselves without harming our macroeconomic stability. <……> I repeat: we must strictly adhere to the decrease of the budget deficit planned for the period 2011-2012. Correspondingly, we will try to move to a deficit of 4.3% in 2011, and 3% in 2012.”
“Over 70% of the 2010 budget expenditure has been clearly earmarked for social programmes. These resources will go towards supporting people's income, and providing them with vital services.”
“We do have a choice about how we deal with this deficit. What are the alternatives? Either we have an abrupt, dramatic reduction in expenditure, or we accept the deficit, but look for additional sources of income, and find reasonable ways of making up for the shortfall. I think there is a stronger case for the latter, and that this is a more viable direction for the country today. It is also in line with the socio-economic policy of social justice, which is a policy we have pursued in recent years. It is, of course, imperative that we fulfil the promises we made to our people, the plans for economic development.”
“We must reorganise budgetary expenditure for 2010, and many projects will have to be cancelled or delayed until a later date. But all the key priorities linked to investments in human resources and in the innovation sectors of the economy must be retained.”
“Economic conditions are very uncertain. But we need to take this uncertainty into consideration, and at the same time understand that we will have to pursue a tight and highly responsible budgetary policy in the next few years. In particular, we must gradually reduce the budget deficit (I will speak about that later), limit the growth of budgetary expenditure, and increase the payoff from each invested rouble. These are the bases of macroeconomic stability and successful post-crisis rehabilitation of the economy.”
“In the draft budget for 2010, we must find an optimal balance for resolving simultaneously a whole number of objectives. First, we must secure the improvement of living standards for the senior generation and modernise our pension system. As you know, a considerable sum of more than 600 billion roubles has been appropriated for these purposes. <…..> Second, we must actively continue using the instruments of enhancing demand for domestic products, which have proved their worth, such as leasing, subsidies for interest rates on loans, and support of exports. Third, we should not forget about the goals of long-term development, programmes for modernising the infrastructure, and support for the high-tech industries. As you know, only yesterday we had a general discussion on supercomputer technology at the Security Council.”
"The cost of this pension reform to the budget is very high. It runs into hundreds of billions of roubles per year. Needless to say, it will be difficult for the Government and the members of Parliament to find the funds for the pension reform in conditions of declining production and reduced budget revenues due to the current global financial and economic crisis. It is time for us to think about ways we can save. We cannot do without an economising effort."
"The budget for healthcare and demography should fund effective measures making sophisticated medical technology more accessible, and improving aid to patients with cardio-vascular diseases, cancers and traffic accident victims."
"There is another pivotal objective-to implement a rigid programme for budget deficit reduction from present-day 7.4% to 3% of the gross domestic product by 2011."
"However, it should remain a development budget-that is, tied in with long- and medium-term plans. Available priority projects should be entitled to priority funding. Practical social pledges underlie each of those priorities-the development of healthcare and education, laying in technological and infrastructural reserves, security and regional development. All this, in the final analysis, determines higher living standards and economic competitiveness for many years ahead."
"It should be said that federal budget spending on the national economy has been increased by 70% in 2009, to a record-high 1.733 trillion roubles (it was 1 trillion roubles in 2008)."
"I have already put the 2009 deficit at 3 trillion roubles, which is in the order of 7.4% of the GDP, as I said, but taking into account those quasi - fiscal resources, and above all, the same expenses from the central bank for the capitalisation of Sberbank, other expenses, it will be 8%. Such a sizeable deficit is a strong, effective medicine for the economy, but it should not be misused. That is why our plan envisages a strict programme to lower the deficit to 3% of the GDP by 2011. At the same time we suggest a war on inflation."
“The deficit problem must be addressed by civilized methods accepted in the whole world, out of the reserves accumulated in the previous years or, if the need arises-let me stress that there is no such need for now - by borrowing in the market.”
