Russia to cover budget deficit with Reserve, National Welfare fund.

MOSCOW, July 31 (Itar-Tass) -- Russia will use both the Reserve Fund
and the National Welfare Fund to cover the budget deficit in the coming
three years and the former will be completely exhausted in 2010, while the
latter will shrink to 940 billion rubles by the end of 2012, according to
Finance Minister Alexei Kudrin.

The Reserve Fund, which will comprise 1674 billion rubles in early
2010, will be fully used to cover the 3.2-trillion ruble 2010 budget
deficit.
In 2010 681 billion rubles will be used from the National Welfare Fund
to cover the 7.5 percent budget deficit, the minister told reporters after
a government meeting on Thursday that discussed next year draft budget.
In 2011 and 2011 the National Welfare Fund will be used to cover
Pension Fund deficit, he added.
Kudrin said other sources to finance the 2010 budget deficit will
total 803 billion rubles.
In 2010 the government does not plan to raise wages of budget-financed
personnel and plans to reduce their number.
"We have to optimize their strength," Kudrin said, adding the saved
money may be used to remunerate the remaining staff.
The government does not plan to raise unemployment compensations
either in 2010. Although "at present we predict unemployment to remain
sufficiently high", Kudrin said the government decreases corresponding
appropriations from 42 billion rubles in 2009 to 38 billion rubles in 2010.
"So far we do not plan to raise the dole," he said. The monthly
compensation currently comprises the maximum of 4900 rubles (160 US
dollars).
The minister also said the 2010 draft budget will have 80 billion
rubles of undistributed expenses that would be appropriated depending on
the economic situation.
According to the minister, the external debt of Russian companies
exceeds 400 billion dollars at present.
"The companies are repaying the debts bit by bit," he said.
In 2010 the government plans to add 40 billion rubles to the 2009
amount used to increase the capitalization of banks.
Kudrin said 210 billion rubles worth of government bonds were
envisaged for the purpose this year and 250 billion rubles in 2010.