Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 02/09/2012

2010 Budget Passes In Key 2nd Reading

The State Duma on Wednesday approved the 2010 budget in a key second reading after plowing through hundreds of minor amendments and brushing aside proposals from the opposition.

The approved amendments, overwhelmingly sponsored by the Cabinet, largely shuffled around amounts earmarked for various budget items — without changing the overall spending of 9.89 trillion rubles ($345 billion).

In some of the major changes, lawmakers voted for cuts on planned state support for banks. The government is now planning to issue up to 100 billion rubles ($3.5 billion) worth of treasury bonds, if needed, to exchange for banks’ preferred shares. The measure, which previously called for 250 billion rubles of bonds, would allow lenders to use the bonds as collateral to draw money from the Central Bank.

The item “state support of Russian credit organizations” also went down to 102 billion rubles from 252 billion rubles. The amendment did not specify what form the support would take.

The spending changes also included adding 10 billion rubles for construction and maintenance of federal roads, 765 million rubles for a Victory Day parade on Red Square and subtracting 62 billion rubles from “general government spending.”

In another modification, the Duma backed an allocation of 1.1 billion rubles to protect Russian shipping companies from pirates.

None of the amendments drafted for the second reading appeared to relate to the state-of-the-nation address that President Dmitry Medvedev delivered last week. This marked a change from previous years, when the Cabinet would use then-President Vladimir Putin’s address as a guideline for drafting the budget.

The pro-government United Russia faction turned a deaf ear to suggestions from the Communists and other opposition factions, invariably voting them down as the body reviewed amendment after amendment.

In one example, Communist Deputy Vladimir Kashin defended the faction’s amendment to transfer 56 billion rubles of national security funding to spending on social needs, saying there was no reason for security spending to grow.

In response, Duma Budget and Taxes Committee Chairman Yury Vasilyev, a member of United Russia, said the move would undermine the amendment to increase security spending by 2.8 billion rubles that the chamber had just backed.

After the measure was voted down, Kashin resignedly went on with his list of proposals, which were equally unsuccessful.

The government plans a deficit of 2.94 trillion rubles, or 6.8 percent of gross domestic product next year, but there’s a chance that the figure will be smaller. The budget is based on a price of $58 for Urals oil, Russia’s main crude blend, which traded close to $80 per barrel Wednesday.

The Cabinet has said the budget’s priority will be to raise pensions 46 percent and fund high-tech industries.

The budget’s third and final reading is scheduled for Nov. 20.


Also in News

Putin Calls For More Religion on TV

Prime Minister Vladimir Putin said at a meeting with religious leaders Wednesday that the "voice of the church" should have a greater presence on state-run television channels and that more TV programming should be devoted to religious topics.

McFaul Epitomizes Embrace of Social Media

U.S. Ambassador Michael McFaul took to Twitter and Facebook on Wednesday in an attempt to refute charges that he's promoting regime change in Russia.

Nation Ticked Off After a Winter of Summer Time

The famous proverb, "Early to bed, and early to rise, makes a man healthy, wealthy and wise," was penned by American founding father Benjamin Franklin. He was also the first to suggest implementing daylight-saving time.

Uproar Widespread Over Chechnya Trip

Hübner and his colleague Johann Gudenus, leader of the Free Democrats' faction in Vienna's City Council, held talks with Chechen leader Ramzan Kadyrov in Grozny last week.

St. Petersburg Anti-Gay Law Advances

St. Petersburg lawmakers on Wednesday approved at the crucial second reading a bill introducing fines for advocating gay and lesbian relationships in front of children and promoting pedophilia.

Pair of 12-Year-Olds Dead In 16-Floor Suicide Plunge

A pair of 12-year-old girls jumped to their deaths Tuesday in the Moscow region town of Lobnya, prompting a children's rights ombudsman to call for a federal program to address the problem of youth suicide.




Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook

print


Comments

This article has no comments.

Be the first to leave a comment





Most Read