Meanwhile, mandatory insurance payments deducted from annual incomes of more than 512,000 roubles will be increased by up to 10%.
The recent plague of locusts visited upon Russian fields was the starting topic of Thursday's government meeting, chaired by Vladimir Putin. Minister of Agriculture Yelena Skrynnik reported on flying over the sites of the infestation: 2 million hectares of land has been examined, 650 hectares that were destroyed have been treated, and the infestation has been localised.
"The agricultural sector has not been harmed," concluded the minister.
"Is there any need for additional funds?" Putin asked.
"We'd really appreciate it," Skrynnik agreed.
"But everything's been localised," the prime minister teased, as the meeting gave in to a moment of laughter.
"With the help of planes, we could have eliminated these pests for a long time to come," explained Skrynnik.
The government session was dedicated to the budget and to taxation and customs tariffs for the years 2012–2014.
"This is the first real post-crisis budget, and, as such, it gives us additional opportunities to address long-term strategic objectives," said the prime minister. "At the same time, it is a socially oriented budget policy with a distinct emphasis on raising the living standard and making progress in healthcare, demographics, education, and retirement benefits."
2012 budget revenues are expected to amount to 10.6 trillion roubles, while expenditures are set at 12.2 trillion roubles, thus projecting a deficit of 1.6 trillion roubles or 2.7% of the GDP. This year's deficit had originally been set at 3.6%, but, in reality, it will amount to a mere 1% of the GDP, the prime minister claimed.
"In order to stimulate business activity," suggested Putin, "insurance payments to extra-budgetary funds will be reduced from 34% to 30%, and 20% for small businesses. A 10% tax rate will be introduced for high annual salaries of over 512,000 roubles. (Essentially, the employer will pay an insurance premium of up to 30% for annual salaries under 512,000 roubles and an additional 10% for every 100,000 roubles over that amount.)
Pensions will be raised by 11% in 2012. The average retirement pension will be increased from 8,500 to 9,300 roubles and the average social pension from 5,100 to 5,700 roubles.
Maternity capital (at present, 376,700 roubles) will grow to 430,000 roubles in 2014. The child benefit will be indexed by 6% in 2012.
Housing programmes are to be allotted 340 million roubles next year, and 10,000 families of retired military personnel who registered for housing before January, 1, 2005 will be provided with accommodations. The housing plan for veterans of the Great Patriotic War will also be completed in 2012, with 50,000 veterans currently on the wait list.
"The monetary allowance for military personnel will be increased by twofold or more," declared the prime minister. "Simultaneously and regardless of departmental affiliation, military pensions will grow by 1.5 times or more."
Larisa Kaftan