Izvestia: "Putin unveils draft post-crisis budget"
The government met to discuss the draft budget for 2012-2014, but Vladimir Putin chose to open the session with an unexpected question.
"What about the locusts, then?" he said.
Even though he was aiming this question at Agriculture Minister Elena Skrynnik, the other senior officials present exchanged glances. Skrynnik said that almost all infected fields had been inspected and that the pest had done no detectable harm to agricultural production.
"So you don't need any additional resources?"
"Yes, all the same that would be helpful" Skrynnik replied, getting her bearings, "towards small aircraft for agricultural purposes."
Putin laughed and moved on to the budget which he described as having a truly post-crisis character. For the first ever time, the nation's overarching financial document was being discussed with representatives of the general public, including the Popular Front. We also need to have an open discussion about the budget with State Duma deputies, he said. They will consider it in October.
In 2012, budget revenue will stand at 10.6 trillion roubles, while outgoings will total 12.2 trillion roubles. That leaves a deficit of about 2.7% GDP. The prime minister noted that this year's budget deficit had been forecast at 3.6%, but ended up being 1%. So we have a chance of reducing the gap between budget revenue and expenses by the end of 2012, he suggested.
"We will adhere to the principle of budgetary discipline and efficient state investment. The budget income and expenses should be balanced in the utmost measure," Putin stressed.
He added that incomes must be raised in line with economic growth and diversification, not thanks to higher hydrocarbon prices.
As in previous years, the state budget will be socially oriented. People will get generous benefit payments ahead of the presidential election. Pensions will rise to 9,300 roubles, child support allowances will grow by 6% and maternity capital will be index-linked: today's level of 365,700 roubles will rise to 430,000 roubles in 2014.
Additional federal budget resources will be directed to major repair work on and re-equipping schools: the government will spend 120 billion roubles over a two-year period to this end, he said. Municipal authorities will also receive state loans to develop pre-school education facilities.
The budget also touches on police reforms. Bodies subordinate to the Interior Ministry will start receiving federal funds from 2012. Next year will see a phased increase in salaries and pensions: first for the officials with the Defence and Interior Ministries, and then for other security officers. In total the federal budget will spend 1,847 billion roubles on national defence in 2012, 2,334 bn roubles in 2013, and 2,752 bn roubles in 2014. Finance Minister Kudrin told Izvestia that this growth is in line with the presidential instruction to invest more funds in modernizing the Armed Forces.
Anastasia Novikova
