Main item on agenda – the implementation of the federal budget, federal targeted programmes and the January-March 2014 Federal Targeted Investment Programme.
Opening remarks by Dmitry Medvedev:
Government meeting
Good afternoon, ladies and gentlemen.
First, I would like to say a few words about the situation in Siberia. A flood has hit the Altai Republic, the Altai Territory and part of Khakassia. Power and road traffic have been disrupted there, and we had to evacuate local residents in some cases. Unfortunately, some people have lost their lives.
We should do everything possible to provide aid to the flood victims. The Ministry of Civil Defence, Emergencies and Disaster Relief is now conducting a large operation. I’d like everyone to take part in this. Generally, I have spoken with many people here; the work is underway, and we are providing assistance. But the regional weather forecast is unclear, weather conditions continue to change there, and it appears that we’ll have to focus on this issue for some time.
Dmitry Medvedev: "Today, we will decide whether to allocate extra funding to these three regions for clean-up operations and for social support to flood victims. We will spend about 4 billion roubles from the Government reserves for these purposes."
Today, we will decide whether to allocate extra funding to these three regions for clean-up operations and for social support to flood victims. We will spend about 4 billion roubles from the Government reserves for these purposes.
And now let’s discuss the main item of the agenda, specifically, the implementation of the federal budget, federal targeted programmes and the January-March 2014 Federal Targeted Investment Programme.
We discuss this topic during Government meetings on a quarterly basis. Not so long ago, we reviewed the implementation of government programmes. It's clear that our activities in this area determine the state of the economy, economic growth and investment activity. The Minister of Finance and the Minister of Economic Development will provide more details. I’ll just go over a few important points.
Dmitry Medvedev: "Federal budget revenue exceeded expenditure by over 175 billion roubles, and the surplus amounted to 1.1% of the gross domestic product. As you may know, the federal budget was executed with a deficit of nearly 0.5% of GDP in the first quarter of 2013, which gives us some cushion."
First, the budget. Overall, we did well at the beginning of this year, even better than planned in terms of certain variables. Federal budget revenue exceeded expenditure by over 175 billion roubles, and the surplus amounted to 1.1% of the gross domestic product. As you may know, the federal budget was executed with a deficit of nearly 0.5% of GDP in the first quarter of 2013, which gives us some cushion.
Sovereign funds are up compared with the beginning of 2014: the Reserve Fund increased by over 260 billion roubles, and the National Wealth Fund was up by 222 billion roubles. This allows us to maintain the stability of our financial system under the current circumstances, and, most importantly, to fully honour our social commitments.
In terms of cash execution of the budget, the first quarter of 2014 was the best it has been in the last few years, almost a quarter, or 24%, of the annual target of the updated budget breakdown. The situation with signing government contracts within federal targeted programmes (FTP) is gradually improving. Regional budgets have become more active in financing FTPs.
Government meeting
Of course, all of the above positive trends, such as consistent budget execution, timely preparation and signing of government contracts and targeted investment programmes, must be preserved and become standard practice rather than nice exceptions. However, that’s not how things are in some areas. I’d like to ask the heads of the departments that are responsible for the programmes’ implementation to complete all necessary procedures as soon as possible and report back to the Government.
Second, the quality of execution of our FTPs. A great deal of money – nearly 1 trillion roubles – was allocated this year for their implementation. However, according to the Ministry of Economic Development, the work of government customers, i.e. ministries and departments, can be assessed as highly-efficient or better than average only with regard to one-third of the FTPs; results were unsatisfactory for three targeted programmes.
Third, improving the efficiency of public investment. Let me remind you that about 830 billion roubles should be allocated this year from the federal budget under the FTIP, and 2,000 facilities should be built and upgraded. So far, only 6% of these funds have been used, which is part of our problem.
We are aware of the causes. They include a lack of documentation and confirmation of estimated costs. Our work sites are very complex and include such ambitious ones as the construction and the renovation of the FIFA World Cup stadiums. We must deal with it all, because the price audit, as I understand, hasn’t yet started. We must proceed with the construction. It is also a factor of economic growth. I urge my colleagues in the Government to take comprehensive measures in order to close this issue.
Children's holidays. Last week, I held a meeting on preparations for the nationwide summer recreation drive, including in Crimea. We have everything we need to organise vacations properly, but it’s imperative that we bring the recreational capabilities up to standard. Nevertheless, the infrastructure is ready, thus about 1 billion roubles, which we will distribute today, will go to pay for vacation packages and intercity travel to vacation destinations for children from various Russian regions. These funds will be used to take more than 30,000 Russian children from 70 regions for summer vacations in Crimea.
Agriculture is another issue that is important to Crimea. It’s imperative that we help Crimean farmers as much as we can, especially since some of them are experiencing difficulties caused by erratic water supplies.
This year, the budgets of Crimea and Sevastopol will receive almost 340 million roubles for regional crop production programmes. About 70 million roubles will be spent on the livestock-breeding sector. Today, we will review the appropriate draft Government directive.
Dmitry Medvedev: "This year, the budgets of Crimea and Sevastopol will receive almost 340 million roubles for regional crop production programmes. About 70 million roubles will be spent on the livestock-breeding sector. Today, we will review the appropriate draft Government directive."
And one more thing: a number of Russian regions bordering on Ukraine, including the Rostov Region, have found themselves in a very difficult situation. Thousands of people, mostly children and their guardians, are now flocking to the Rostov Region and to some other regions. The number of newcomers is increasing by 3,000 people daily. I phoned the Governor of the Rostov Region today to talk about this issue.
The difference between people arriving and departing is about 5,000 people daily, an all-time high. Of course, far from all these people apply for refugee status. Earlier, very few of them requested refugee status, and now their number has already reached 4,000. This is an unprecedented situation.
In any case, the people are afraid. At the same time, Ukrainian authorities perceive no humanitarian problems and claim there are no refugees. These are lies, of course, and it is very sad to hear all this. And the so-called G7 is even talking about the Ukrainian army’s moderate actions against its own people.
But we are not here to discuss this, although this amounts to unlimited cynicism. We need to assist regions facing this situation. Their representatives will contact the Government. I would like to ask Mr Shuvalov and Mr Kozak to address this problem, to draft the required documents and, if necessary, to report to me.
Let’s start discussing the first item of the agenda – the implementation of the federal budget, federal targeted programmes and the Federal Targeted Investment Programme.
<...>
