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Medvedev Promises Increased Social Spending

This year's federal budget, along with the planned budget for 2010 to 2011, will be amended to strengthen spending on programs for social welfare and economic development, President Dmitry Medvedev told a group of lawmakers on Thursday.

"Despite the significant decrease in federal revenues, we have managed to not only preserve, but in some cases, actually increase social spending," Medvedev said. "All social obligations must be fully met."

The amendments, which the Kremlin press office said were signed into law on Wednesday, will increase spending on a broad range of programs, including pension programs and benefits, as well as projects for strengthening industrial demand, easing administrative pressure on business and revitalizing the national financial system.

Even those sectors that are not receiving more money under the amended budgets are still receiving more money than last year, Medvedev said.

"The current crisis is no reason to stop reforms," Medvedev said. "It is crucial to modernize the social service, transport and communication infrastructure."

He said education and health care would be a priority and the government would continue to develop the agricultural sector.

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