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
“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.”
“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".
"I would also like to stress a substantial growth of investment into the national economy. For the first time, we will spend more than a trillion roubles to this end. This will be 35% more than last year".
"I must say that in drafting the budget, the Government set itself the task of primarily funding education, health care, innovation development of the economy and infrastructure, and, of course, the security of our citizens".
"The draft federal budget has set a target of decreasing inflation to a one-digit number in 2009. That is one of the key indicators. I'd like to ask all the departments to consider this view of the situation".
"I'd like to draw your attention to the fact that we do have a surplus. And we must use this opportunity as long as possible when we make up the budget of the country with the surplus. And I want to ask you not to encroach on it if we want to stay within planned inflation borders. Because otherwise all these expenditures will turn negative both for the economy and for individual citizens".
"The budget strategy should be based on the policy of Russia's long-term development until 2020, and in fact this strategy is a part of this policy - its financial frame, basis, and foundation. Moreover, the financial strategy itself - I mean the long-term financial strategy - is estimated even for the longer term, until 2023".
"In developing the budget we have, for the first time, applied in practice the «sliding three-year period» method. In other words, we correct budgetary items for 2009 and 2010 and at the same time make plans for 2011. Let me stress that all earlier budget commitments are to be complied with unconditionally. This is the underlying logic of the three-year budget".
"We have new ministries and agencies, at least they have new names. This should not be a pretext for holding back financing of the programmes already adopted. I especially would like to draw the attention of the Minister of Economic Development and the Finance Minister to this. Equally, the change of the government institutions' status should not mean holding back funding. What matters to us is not the status of an institution or its name, but the substance of the programmes. We must implement these programmes and we must not delay them under any circumstances. So I urge my colleagues to think about an effective way of closing this problem once and for all, rather than go from door to door to various agencies and spend a whole year getting the necessary approvals. That cannot be tolerated. We don't want more red tape".
"Rational use of budget money is one of the key tasks facing every government body. Let me remind you that irrational use results in an excess of liquidity in the economy and spurs inflation. Agencies keep asking us to increase funding, and then they fail to use the allocated resources in a timely manner. Monitoring that process must be one criterion for assessing the effectiveness of government agencies".
"The updated projection of the federal budgetary revenues will increase to almost 9 trillion roubles, i.e. by more than 900 billion roubles. My heartfelt congratulations. The revenues of off-budget funds will also grow by a total of over 100 billion roubles".
