January 21, 2008 |
|In 2007, the deviation of federal budget execution from scheduled parameters was much more notable than in the previous years. According to the data that the RF Finance Minister released yesterday, the 2007 revenues stood at 7.76 trillion rubles, or 104.3 percent of the target, the spending amounted to 6.13 trillion rubles (93.8 percent) and 5.98 trillion rubles (91.5 percent) for financial and cash execution respectively.|
The 2007 revenues were 10.1 percent above the amount posted in 2006, while the spending manifested the growth of 13.3 percent. The federal budget surplus reached 5.5 percent of the GDP (7.4 percent in 2006). In its calculations, the Finance Ministry used the GDP estimate of 32.53 trillion rubles for 2007.
The tricky point is that, but for skyrocketing prices for crude oil and the one-time receipt of money generated from selling the Yukos assets, the revenues target was unlikely to be met at all. As to the spending, it stepped up by roughly 1 trillion rubles late in past year.
What’s more, Finance Ministry compiled the report in view of the formal budget parameters. Past November, however, the government sanctioned Finance Minister Alexei Kudrin to transfer a portion of spending (at least 475 billion rubles) from 2007 to 2008, continuing to regard it a part of 2007 spending. Under November estimate of Kudrin, the spending of 2007 budget should have equaled 90.7 percent of adjusted plan. But the actual amount was somewhat bigger.