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
“The key role in replenishing the budget is to be played by more traditional sources of revenue, i.e. regular taxes paid by enterprises and individuals. Such taxes are less exposed to the influence of commodity markets and therefore ensure stable budget revenues.”
“We have to proceed from the assumption that the federal budget will report a deficit not only this year but also in the next several years. This circumstance imposes particular responsibility on the Government and calls for a conservative budget strategy that would preserve and strengthen confidence in the national financial system.”
"Let me give you the main characteristics of the budget. The revenue is 6.7 trillion roubles, the expenditure is 9.7 trillion. It is easy to see that the deficit is 3 trillion roubles, which is almost 50% of the budget revenue and 7.4% of the GDP. The amount is considerable but not unmanageable. I think our behaviour under the circumstances is responsible. It has been decided that the entire deficit will be covered out of the Reserve Fund. The figures are eloquent. It is not only about adapting the budget to the new economic conditions. The changes are fundamental, they determine our financial policy in the medium term."
"379 billion roubles have been earmarked for transfers to the Pension Fund and other extrabudgetary funds. We also intend extra banking allocations and extra transfers of 150 billion roubles to the regions, plus loans worth the same amount. Russian Railways will receive 54.6 billion roubles. 35 billion roubles will go for war veterans' housing. 100 billion will go to the reserve. Other anti-crisis measures concern loan interest subsidies."
"The amendments proposed by the Ministry of Finance serve to regulate the use of the Reserve Fund to cover the budget deficit that we will have to face over the course of the next few years. We have made a calculated decision to use the available reserves on a large scale, despite a drop in budget revenues, so as to fully adhere to the Government's social commitments and to fund anti-crisis measures."
“As we have said on more than one occasion, we will not reduce the budget's expenses in 2009. On the contrary, they will be slightly increased even further, because we will have to spend money on anti-crisis measures. In addition, the draft grants broader rights to the regional authorities for supporting municipalities.”
“At the same time, considerable allocations must be re-channeled to anti-crisis measures, pensions, public-sector wages, other social commitments to the population and financial aid to Russian regions in line with inter-budgetary relations. State defence contracts and high-priority national projects will be funded ahead of schedule.”
"The very same budgets are a source of numerous social benefits. Such budgets must therefore be amended in such a way as to rule out any wage and benefit arrears in any, even the most unfavourable situation as regards revenues. I am also asking you to prioritise sufficient regional and local budgetary allocations for implementing employment programmes. This implies mandatory co-financing on the part of regions and additional measures that can be implemented by them."
“In March, all of us will have to make a responsible decision and approve a new version of the federal budget. As has already been said, there are no plans to reduce overall expenditure volumes. In fact, budgetary expenditure will increase by a small margin.”
“We have not cut social expenses in adjusting the budget. On the contrary, in absolute figures we are increasing it, although only slightly. In relative figures there is no reduction, either, as compared with other areas of government activity. Moreover, there is even an increase. I'm referring to the special character of measures needed in the circumstances. I know that the majority of European Governments share this approach and are taking active measures to alleviate the consequences of economic turmoil for their citizens.”
"We will also consider amendments to the 2009 federal budget. It has been proposed that state guarantees be affirmed at 300 billion roubles for loans taken by defence and other strategic companies. Another 150 billion roubles will be allocated for supporting the labour market and the manufacturing industries."
"Today we will consider the report on budget execution within the first nine months of 2008. I would like to underscore that financing of priority budget items was boosted, which is good news. For example, education expenses have totaled 198.6 billion roubles, compared with 174 billion within the same period of the last year. We have allotted 155 billion roubles to the development of healthcare and sports, which is almost 50 billion more than in 2007. Financial aid to Russia's Regions was boosted as well. Interbudgetary transfers have grown 177 billion roubles, amounting to 740 billion roubles."
"To make strategic plans, investors and local governments should be aware of the Investment Fund's possibilities as well as their own abilities. This means that we need a long-term forecast for replenishing the Fund with money."
"Obviously, one of the major anti-recessionary tools is federal budget funds. We must effectively allocate them to back solvent demand in the economy, and to ensure unqualified fulfillment of social liabilities, including timely payment of state-paid employees' wages, pensions, and benefits."
"No doubt, considerable budget funds will be needed to support the financial sector and industries. The amount should be commensurate with the scale of the problems that arise. Half-measures will not accomplish our goals. However, there are budget limitations that cannot be ignored. For this reason, the effectiveness of this budget spending - both current and additional - is vital".
"In the last few years, much money was spent on the repair of the Bolshoi and Mariinsky theatres. Initially, this funding was supposed to be reduced, but we decided to preserve it. Starting in 2009, we will finance many cultural monuments, primarily, those on a special list, and not only in Moscow and St Petersburg but also in the rest of Russia."
"We must study everything that concerns the preparation for the Beijing Olympics. Our Chinese partners' best practices are to be meticulously analyzed and taken into consideration. It is also important to follow organisational nuances when observing the preparing for the Vancouver and London Olympics".
"I would like to note that the 2008 budget is being executed smoothly and according to the planned schedule. The budget surplus amounted to 1.4 trillion roubles in the first six months, while the Reserve Fund assets reached 3.1 trillion roubles and the National Welfare Fund amounted to 770 billion roubles. This shows that our budget system has reached a considerable financial safety margin, which makes for minimising the negative impact of the instability of the world financial markets and fluctuation of raw materials prices".
"These decisions should not make us forget about our current work. If we do make these decisions this year and start implementing them next year we will have to ensure the indexation of pensions at the beginning of the year and in the second half of the year. If we make these decisions in the second half of the year the rise will be already considerable and we should make sure that the Pension Fund has the money. You have to be in contact with the Finance Ministry and other agencies to ensure that nothing misfires".
"The increase in wages for public sector employees in the regions should be coordinated with our plans to increase the labour compensation fund for the budget-paid employment sector. On December 1, federal employees will get a 30% increase in wages, and all of this has to be coordinated".
