Russian govt to submit draft budget to State Duma.

MOSCOW (Itar-Tass) - The Russian government is expected
to submit a draft federal budget for 2012and for the longer period of
2013-2014 to the State Duma lower parliament house on Friday.
Under the Russian Budgetary Code, the country's budget is to be
submitted to the lower parliament house by October 1, or Saturday.
According to a source in the Duma budgetary committee, the first
reading is planned for October 21, the second reading - for November 18,
and the third reading - for November 22.
The draft budget's basic macroeconomic indices for 2012 are as
follows: the revenues are planned at 11.789 trillion roubles, and the
spending - at 12.658 trillion roubles. In 2013, budgetary revenues are to
be at 12.715 trillion roubles, and the spending - at 13.719 trillion
roubles. The figures for 2014 are 14.201 trillion roubles in revenues and
14.579 trillion roubles in expenditures.
A year ago, the country's budget (for the current year) provided for
8.8 trillion roubles in incomes and 10.6 trillion roubles in expenditures.
In the mean time, Russian Prime Minister Vladimir Putin pledged on
September 16, the year 2011 will see no budgetary deficit.
The 2012 draft budget is based on an expected price of the Urals brand
oil of 100 U.S. dollars per barrel and GDP growth rates of 3.7 percent.
The overall GDP is fixed at 58.683 trillion roubles. The 2013 draft budget
is based on the oil price of 97 U.S. dollars per barrel and provides for
the GDP growth rate of four percent, and its overall volume of 64.803
trillion roubles. The 2014 budget is calculated based of the oil price of
101 U.S. dollars per barrel and provides for the GDP growth of 4.6 percent
and the GDP volume of 72.493 trillion roubles. The Russian government and
the Central Bank of Russia see it as their task to bring down the
inflation rate to five to six percent in 2012, to 4.5-5.5 percent in 2013,
and to four-five percent in 2014.
The budget deficit will be 1.5 percent to the GDP in 2012, 1.6 percent
in 2013, and 0.7 percent in 2014. Speaking about the first index (1.5
percent), the prime minister noted it is "preliminary." "I hope that
positive macroeconomic dynamics will make it possible to later adjust the
budget in a positive way," he said. "It means that the course towards a
deficit-free budget will be further pursued."
Among tools to meet the deficit are state loans and proceeds from
privatization of federal property. At the same time, according to first
deputy chairman of the Duma budgetary committee Vitaly Shuba (United
Russia), lawmakers have okeyed amendment to law that allow the government
to cover the budgetary deficit from oil and gas proceeds. "The cabinet of
ministers is authorized to tackle issues of deficit reduction
independently," he said.
As concerns the state's social obligations, "all of those that have
been made, of course, will be fulfilled," said the legislator. At the same
time he pointed to "what was announced by Prime Minister Vladimir Putin at
the congress of United Russia."
In particular, he said "we need to index wages to public sector
employees," recalled the deputy, adding that "this should be done by
regions, and the Federation is ready to help."
"I believe that when the draft budget will be examined in the State
Duma, corresponding amendments will be made to the bill - in view of what
was said at the congress," Shuba said.
Social spending in the 2012 budget will account for 35 percent, for
36.4 percent in 2013, and for 36.7 percent in 2014. Spending on national
economy will be 15.7 percent in 2012, 14.5 percent in 2013, and 14 percent
in 2014. Expenditures on national security and protection of law and order
in the country will be 12.3 percent in 2012, 13.6 percent in 2013, and
14.3 percent in 2014. Defence spending will amount to 8.6 percent in 2012
and 2013, and 8.7 percent in 2014.