MOSCOW, October 8. Prime Minister of Russia Dmitry Medvedev said that the work on the draft budget for 2016 as a whole was productive, though not without controversy.
“Work (on the project budget) was conducted. It was generally productive, even in spite of the large number of disputes and disagreements, which, in fact, always happen,” he said at the Cabinet meeting.
“I signed the order to complete the project budget (by 2016)”, – he reminded. “Several positions, in all likelihood, will still require harmonization, alignment, but in General I believe that the draft budget is a high degree of readiness”, – said Medvedev, adding that the same applies to the budgets of state extra-budgetary funds.
Yesterday during the consideration at the meeting of the budget Committee had made a number of comments, proposed edits. “I hope that all this will be taken into account during the remaining few days,” he said..
The Prime Minister stressed that the preparation of the main financial document of the country has always been a challenging job, and this year “the process doubly difficult.” Medvedev explained that this is due to difficult conditions in the economy and the need for budget optimization, the solution of urgent problems facing the country.
The Prime Minister reminded that the draft budget was prepared in a constantly changing macroeconomic situation. No matter how difficult was the situation in the economy, it is important for us to save key programs aimed at the development of the country and the people,” he said.
With the medium-term prospects
Prime Minister urged to lay even in the budget for 1 year of the directions of development in the medium term.
The Prime Minister reminded that at this time the government is preparing a draft budget for one year, “but to provide guidelines for the medium term, we nevertheless need”.
“Today we should give the current view on how it might look. No matter how difficult was the situation in the economy, it is important for us to save key programs aimed at the development of the country and the people,” he said.
According to him, the draft budget for 2016 is a high degree of readiness, however, some positions require adjustment.
The need for effective dialogue and tight controls
Medvedev said that the heads of departments will need to build an effective dialogue with the Parliament in considering the draft budget for next year.
“All the Ministers, all Deputy Prime Ministers – each in his own direction – need to build an effective dialogue with deputies, Federation Council members, presenting a unified position of the government and, thereby, to work for a common result,” he said at a government meeting.
Medvedev demanded from the members of the Cabinet to tune in to “the most constructive interaction with Parliament”.
“The budget is difficult. It is clear that it will always trigger emotions, it will be criticized. Because the task of the government is to adopt a balanced budget, the task of the Parliament as a whole is also to support this approach, but at the same time, for obvious reasons, they have their own mandates, and their understanding of the development of the country”, – stated the Prime Minister.
“All these approaches we have to combine,” warned the head of government. The government will demand stricter control of expenditure budget and increase its efficiency, Medvedev said.
“Going from all to demand a higher return on the investment funds, to demand stricter control over compliance with financial discipline, will continue to improve the system of public procurement and procurement of companies with state participation”, – said the Prime Minister.
The Ministry expects the resumption of economic growth in 2016, although this assessment is not shared by everybody, the Prime Minister said.
According to him, in the future, as the recovery in investment demand, consumer demand growth may strengthen. “Let’s hope that this trend will prevail,” he said.
“You need to take all necessary administrative decisions, because the task of the government lies in the decisions – both regulatory and individual, for the various directions of development of economy and social sphere”, – said the head of government.
The development of the Russian economy in 2015 has gone on a more positive scenario than was expected, also said the Prime Minister.
According to him, a number of programs of anti-crisis plan proved to be quite effective, “not all, but some of them shot, as they say, time”. “Some of them is not needed, because the development of the crisis followed somewhat more moderate scenario, frankly, something that we discussed at the beginning of the current year”, – said Medvedev.
Prime Minister Dmitry Medvedev said that the budget deficit in 2015 will amount to 3% of GDP.
“Today we approved amendments to the 2015 budget. Reducing the deficit to 3 percent of GDP, he said.
The anti-crisis budgetary maneuver that we have taken in the beginning of the year, has enabled the economy to gradually adapt to the new conditions and has smoothed the impact of negative factors and support positive processes”.
“It (the forecast on which the government relies) implies a continued impact on the economy of some factors, first of all, this scenario assumes the retention of anti-Russian sanctions and restrictions on capital markets”, – said Prime Minister Dmitry Medvedev at a Cabinet meeting discussing the draft budget for next year.
“Capital markets, financial markets, foreign, international markets for our country are closed, he said. – We are growing at the expense of own resources. Such a test may be, has its positive side.”
Medvedev noted that during the preparation of the draft budget, the government focused on the socio – economic development of the Russian Federation to 2015-2018. “We understand how difficult is to predict. Forecasts all the abuse, but try it for yourself forecast to be in the face of such volatility,” he said.
The Prime Minister stressed that the government will proceed from the baseline scenario, which is based on a “fairly conservative estimate of the cost of oil and assumes a moderate growth of social obligations”. “In conditions of high uncertainty in the markets to better focus on the conservative scenario for cautious Outlook,” he said.