BUDGET AND ITS SAW

FINANCE

Last Friday, the State Duma again discussed the federal budget for 2006. As it turned out, the darkest section in the classification of expenditures is “National issues”. It was he who was encroached upon by many, even purely loyal, deputies, ...

Last Friday, the State Duma again discussed the federal budget for 2006. As it turned out, the darkest section in the classification of expenditures is “National issues”. It was he who was encroached upon by many, even purely loyal, deputies, looking for where to get money from, without looking at the Stabilization Fund.

National issues include: financing of all branches of state power, including the president personally, local self-government, ensuring the holding of elections and referendums, ensuring the activities of tax officials, customs, servicing the public debt, as well as undeciphered "reserve funds" and "other issues".

In just three hours of work, the parliamentarians adopted 14 amendments and rejected 364. Among those rejected were proposals to increase funding for housing for orphans, social support for honorary donors, compensation for the costs of medical institutions for the "communal", as well as proposals to finance the equipment of the southern section of the state border and support for reindeer husbandry.

Proposals for an additional increase in student scholarships and teachers' salaries did not pass either. Deputy Oleg Smolin, who voiced these amendments, called on his colleagues to "remember their teachers and vote as their conscience dictates." “Conscience tells us the right thing,” retorted from the rostrum the speaker, the head of the Duma Budget Committee, Yuri Vasiliev, after which the amendments failed successfully.

The result of the next budget discussion was an additional 163 billion for the development of the national economy, 7 billion for housing and communal services support, about 4 billion for healthcare and sports, and a billion increase in interbudgetary transfers. There was also an additional billion to ensure national security. This money should reach the precincts. Expenditure on social policy has decreased by 8 billion compared to the first reading.

In general, the main parameters of the 2006 budget look like this: revenues - 5.046 billion (20.7% of GDP), expenditures - 4.270 billion (17.5% of GDP), the surplus will be 776 billion rubles. The growth of consumer prices is promised no more than 7-8.5%, the average annual exchange rate of the ruble will be 28.6 dollars, and the amount of the Stabilization Fund at the end of 2006 will exceed 2.242 billion.

The main round of budget battles will take place in November, when deputies will distribute funds for specific areas.