Yesterday the Cabinet met in full session to review the fulfilment of the federal budget in the first nine months of the year and the use of the Investment Fund. However, the ministers found time to discuss other details. A heated discussion developed on one of the vital issues of the day, powdered milk.
"I suggest we begin with an information brief," Vladimir Putin entered the hall quickly and began calling on the ministers.
The first to speak was Deputy Prime Minister Alexander Zhukov.
"On Monday, we are switching to a new work payment system," he reported. "No one will be paid more than previously, and any raise will depend on the quality and intensity of work," he said.
He added that from January 1, 2009 the minimum wage would rise to 4,330 roubles and that the 2009-2010 budget had already earmarked for the required sums.
"The other day, the agro-industrial sector asked for help with selling not only cereals, but also corn and sunflower seeds," the Prime Minister turned to his first deputy, Victor Zubkov.
"Yes, this year's harvest was good. And the market still has 20 million tonnes of unsold grain," the First Deputy Prime Minister echoed. "We plan to buy 10 million tonnes for the intervention fund, and, incidentally, have increased purchase prices. Farmers have already received 8.5 billion roubles for the grain allowing them to repay loans and buy mineral fertilisers ... "
"Yesterday (during a meeting on competition - Izvestia)," Mr Putin interrupted Mr Zubkov, "we discussed new technical standards for milk products."
The fact is that from December 17 only an organic whole product can be called "milk" while the rest, produced from powdered ingredients, should be branded "milk drink." Now producers are in a flurry to dump their supplies on the market before the new standards take effective.
"Do we need these standards?" Mr Putin asked.
"We do, but it is also true that the law we have adopted has no introductory period. That is not good," Mr Zubkov said. "If you instruct us, we will see to it and maybe decide to introduce such a period."
"I am not so sure," the Prime Minister replied tersely. "If a decision is made, it must be acted on, not shelved. You must supply us with high-quality food products. By ‘us' I mean citizens of the Russian Federation, not members of the Cabinet, of course."
Everybody liked the joke, and it was agreed not to postpone the measure. But the fun was short-lived. The agenda turned to a more serious matter - effective use of budget money and of the Investment Fund. It was the same old story: although the year is drawing to a close, only 65% of the allocated sums are used.
"In the first nine months the budget was 79.8% fulfilled with respect to revenue and 60.6% to spending," Mr Kudrin said yesterday.
Things were not looking so bright with the Investment Fund either. Out of 19 projects to be financed this year, only 11 received funding.
"No contracts have yet been concluded on any of the four federal motorways," the Prime Minister rebuked his ministers. "What's more, the record indicates a private investor has already done its part while the state is dragging its feet."
However, Mr Putin said that the opposite was more often the case, with the state contributing its share while investors were still sitting on their hands.
"What we need is good timing," the Prime Minister said, "while the Cabinet passed the responsibility to VEB."
"Now that we are in the midst of a global financial crisis and next year's revenues will be down, we have agreed to review existing projects," Mr Kudrin told journalists after the meeting.
Anastasiya Savinykh