“In terms of budget spending priorities, they will remain unaltered. We will ensure that the social obligations of the government are fulfilled and pay particular attention to the programmes connected with modernizing the economy and developing high technologies. On this subject I can say that in 2011 pensions will grow by 9% compared to the basic one of 2010. The old-age retirement pension will increase to 8,780 roubles, while the social pension will rise to 5,050 roubles. And the major increase is set to take place on February 1 of next year.”
“I'd like to point out that this upcoming budget will be tight. In these conditions it is very important for us to focus on our priorities. We must justify and consider the effectiveness of all expenditures and only spend money on truly important issues. This primarily applies to social services and meeting our social obligations. I'd like to emphasise that our unconditional priorities include everything related to pensions, allowances, public sector wages and salaries, the implementation of housing programmes and the development of healthcare.”
“It’ll take time to overcome the negative effects of the global recession fully, rebuild the economy and reverse the budget deficit. This is why we cannot expect a sharp increase in budget revenues in coming years, which we could have spent on items other than servicing our debt. The budget will continue to run a deficit for the next few years, which is why we must adopt a highly responsible approach for each expenditure item, concentrating resources on high-priority budget items and trying to stay on schedule to reduce the budget deficit to 3% in 2012. The same strict discipline is also absolutely necessary for regional budgets in order to avoid discrepancies and ensure the stability of the entire budget system.”
“We will continue working on the budget today and we will review the scenario plans for economic development for 2011-2013. I'd like to emphasise the particular basis of this document. It is designed for a post-crisis period when we must not only fully overcome the consequences of the past year's recession, but also achieve steady development. Needless to say, as we agreed, the budget should be based on conservative predictions, which will be carried out in any event. However, I believe that the scenario plans should reflect the government's efforts to modernise the economy and formulate a clear understanding of the prospects and factors of future growth”.
“We should proceed from the fact that a low or even zero budget deficit is normal for Russia. Only such policy can make one feel confident amid fluctuating prices for our export products. We should not cut back on budgetary spending and forego unsecured debentures. We must unfailingly honour our commitments before Russia's citizens whatever the circumstances. Consequently, we have to stick to our timeframe and reduce the budget deficit to 3% in 2012 and then down to zero in 2015”.
“We decided not to cut the government spending on every budget item. We can often hear that there was a radical reduction, but we didn't make wholesale reductions of spending on every budget item. We chose a different solution, and I believe we did the right thing. As a matter of fact, we kept the budget at the planned level, redistributing budget spending to benefit the sectors that can ensure social and economic stability in the country. Moreover, budget spending grew significantly in 2009, if compared with 2008, the pre-crisis year. I was surprised to see these numbers myself yesterday. Budget spending grew 27.3%, whereas revenues dropped 20.9%. We used the reserves we accumulated to offset the deficit.”
"Recently, we have focused our attention on the preparation of and implementing the budget. Budget planning is a major yardstick by which we measure the effectiveness of public administration. It allows us to see whether the government can actually address the problems people face."
“Forecasts for social and economic development and basic budget indices should be based on conservative and realistic estimates that take into account all possible risks, particularly unpredictable fluctuations in global markets for oil, metals and other basic Russian exports.”
“We need to prepare in advance for the entry into force of the law altering the status of public institutions, which envisages fundamentally new approaches for preparing and executing of budget expenditures. In particular, the usual estimates will be replaced by measures such as targets in education, healthcare and other public services. These targets will be used not only to determine how much funds are allocated but also to set requirements for the scope and quality of work. The purpose of these changes is to provide healthcare, education and the services of our entire public sector to citizens by providing an incentive for careful attention to people's needs and demands.”
“It should return to traditional financial planning. We had to temporarily abandon it last year in order to take extraordinary measures due to the global financial and economic crisis. We had to implement government anti-crisis programmes, which on the whole have met their targets. The situation has now been stabilised, and we can again afford to prepare a more routine budget. Therefore, we must produce a high-grade budget for 2011 that will meet long-term objectives and fully guarantee the fulfilment of social obligations.”
