The meeting focused on the execution of the federal budget and federal targeted and investment programmes in January-September 2013.
Dmitry Medvedev’s opening remarks:
Government meeting
Today, the President delivered his annual address to the Federal Assembly. It contains serious targets and goals. The Government is traditionally responsible for implementing it. Most instructions have been issued directly to the Government, and hence, each member of the Government should carefully assess everything that the President has said and properly prepare for implementing his instructions. The Government staff will organise this work.
Today we will discuss the execution of the federal budget in the first nine months of 2013, as well as the progress in the implementation of the Federal Target Programme and the Federal Targeted Investment Programme.
Dmitry Medvedev: "The budget is an instrument for implementing our immediate and medium-term plans. Budget funds should primarily be used to accelerate the quality transformation in the social sphere and to stimulate investment and business activity."
Unfortunately, a downward trend was reported for the majority of the principal macroeconomic indicators in this period. According to the Ministry of Economic Development, the GDP grew by a mere 1.3%. This is the figure for nine months, although the situation seems to have improved. Industrial production has not grown at all, although this doesn’t mean that we do not launch new industrial facilities. We do, and we will continue to do this. But the situation with investment in fixed assets and in industry as a whole is not at all positive. We need to work on it.
It is understandable that the general economic deterioration, instability in the global financial markets, oil price fluctuations, internal problems and economic disproportions greatly influence budget execution. However, we should understand that the budget is an instrument for implementing our immediate and medium-term plans. Budget funds should primarily be used to accelerate the quality transformation in the social sphere, as the President has said in his address, and to stimulate investment and business activity. Of course, this should be done in a considerable measure through a more efficient use of budgetary funds, which is a very large resource.
Government meeting
During a Government meeting in September, I pointed out the unsatisfactory progress of federal programmes. Unfortunately, the situation has not improved over the nine months of the year. The funding of whole sectors is insufficient. Furthermore, the contribution from regional and local budgets and extra-budgetary sources has decreased.
The progress of four programmes has been judged inadequate. I will enumerate them again: Development of Inbound and Domestic Tourism, Information Society, Ensuring Flight Safety and Creating a System to Summon Emergency Services. The Government has discussed two of these programmes. We either need to radically change the situation or stop these programmes. And we must make the decision by the end of the year.
Dmitry Medvedev: "A few words about the main parameters of budget execution for the first nine months. Revenues exceeded 9.6 trillion roubles, which is more than 500 million above the target figure. This was made possible by the favourable external situation in some sectors. Expenditures were around 9 trillion roubles. Hence, the budget surplus was approximately 650 billion roubles. The Reserve Fund increased by 910 billion roubles, and the National Wealth Fund by 156 billion roubles."
A few words about the main parameters of budget execution for the first nine months. Revenues exceeded 9.6 trillion roubles, which is more than 500 million above the target figure. This was made possible by the favourable external situation in some sectors. Expenditures were around 9 trillion roubles. Hence, the budget surplus was approximately 650 billion roubles. The Reserve Fund increased by 910 billion roubles, and the National Wealth Fund by 156 billion roubles. In this sense, the situation is quite positive, which gives us a degree of safety. We should be aware of this and use it whenever possible. The import and export customs duties provided the biggest part of revenues – more than a third. VAT accounted for slightly less than one-third and the mineral extraction tax for around 20%.
Several issues on our agenda today concern the distribution of subsidies among regions. This is 14 billion roubles, of which 1.2 billion roubles will be used to compensate the losses of flood-affected farms in the Russian Far East, and 13 billion roubles will be allocated to balance the budgets of 23 regions. They do have problems, which is a result of the economic situation in the world and in Russia. This concerns, in part, the profit tax.
Now I’d like to address our regional colleagues – the governors. The Government helps you to balance your budgets, and we will continue to do so. But it is very important for us to know that you will honour all of your social commitments in full and on schedule.
Today, we will discuss the distribution of federal budget subsidies in 2014; they concern our social obligations.
<…>
