MOSCOW, July 6 (RIA Novosti) - Russia's lower house of parliament approved in the final, third, reading Friday the first three-year budget seen as a transition to longer-term financial planning and designed to streamline finances and expenditures.
In 2008, revenues are set at 6.6 trillion rubles ($259 billion), or 19% of Gross Domestic Product, and expenditure at 6.6 trillion rubles ($256 billion), 18.8% of GDP. Surplus is expected to be 74.1 billion rubles ($2.9), or 0.2% of GDP.
In 2009, the figures are planned at 7.5 trillion rubles ($291 billion) and 7.4 trillion rubles ($290 billion) respectively. And in 2010, both revenue and spending are expected at over 8 trillion rubles ($315 billion).
GDP growth in 2008-2010 is forecast in the budget at 6-6.2% a year. In 2008, GDP will be 35 trillion rubles ($1.4 trillion), 39.7 trillion rubles ($1.5 trillion) in 2009, and will reach 44.8 trillion rubles ($1.7 trillion) in 2010, according to the budget.
Inflation is expected to fall from 6-7% in 2008 to 5.5-6.5% in 2009, and 5-6% in 2010. The average dollar rate is forecast at 25.9 rubles per dollar in 2008, 26.2 rubles in 2009 and 26.8 in 2010.
The Reserve Fund - from next year part of the Stabilization Fund cushioning the federal budget in the event of an oil price plunge - will amount to 3.5 trillion rubles ($136.3 billion) in 2008, 3.9 trillion rubles ($154.6 billion) in 2009, and 4.5 trillion rubles ($174.5 billion) in 2010, the budget says.
On national defense in the next three years, the state will allocate 509.1 billion rubles ($19.8 billion), 566.7 billion rubles ($22. billion) and 596.1 billion rubles ($23.2 billion) respectively. The security sphere will receive 521.8 billion rubles ($20.3 billion), 642.6 billion rubles ($25 billion), 693.5 billion rubles ($27 billion).
Funding for education in 2008-2010 is envisioned at 306.7 billion rubles ($11.9 billion), 313.6 billion rubles ($12.2 billion), and 339.8 billion rubles ($13.2 billion). Healthcare and sports will receive 211.6 billion rubles ($8.2 billion), 245.2 billion rubles ($9.5 billion), and 295.3 billion rubles ($11.5 billion) in the next three years respectively.
The speaker of the State Duma, which is rounding off its spring session Friday, said improving living standards in the country was the budget's main focus.
"We have done everything to ensure a period of sustainable growth in key areas - economy and welfare," said Boris Gryzlov, also the leader of the Kremlin-backed United Russia party, which dominates the house.
The budget envisions a rise in the minimal wage from 2,300 rubles ($89) to the subsistence level, which currently stands at 5,120 rubles ($200) per capita, by early 2011, and the use of Stabilization Fund money to offset the pension fund deficit. Average pensions are expected to increase to 5,105 rubles (about $200) by 2010, 1.7 fold on the current levels.
