The following issues are scheduled for discussion at the June 10, 2010 meeting of the Government of the Russian Federation:
1. Implementation of the 2009 Federal Budget
I. General parameters of the Federal Budget implementation
In 2009 GDP amounted to 39,063.6 billion roubles, 7.9% less than in 2008 (the decrease on a quarterly basis compared with 2008 was 9.4% in Q1, 10.8% in Q2, 7.7% in Q3 and 3.8% in Q4), with inflation at 8.8% (compared with 13.3% in 2008).
The dynamics of the Russian economy in 2009 was contradictory. The first six months of 2009 saw the peak of the economic crisis while the second six months saw stabilisation of the economic situation and a gradual slowdown of the rate of economic downturn.
The improvement of the economic situation in the second half of 2009 owes much to the implementation of the government's anti-crisis plan, debt restructuring, stabilisation of the external economic situation and the adaptation of economic agents to the current situation.
Federal Budget revenue in 2009 stood at 7,337.8 billion roubles, an increase by 623.9 billion roubles (9.3%) on the forecast for 2009. The Federal Budget spending during the report period was 9,660.1 billion roubles, which is 185.1 billion roubles (1.9%) less than the updated budget targets. The Federal Budget deficit amounted to 2,322.3 billion roubles, which is 809.1 billion roubles (25.8%) less than the updated budget target.
The dynamics of implementation of the main Federal Budget targets over the past five years has been as follows:
(in % of GDP)
|
II. Federal Budget revenues
1. The tax revenues of the Federal Budget for 2009 amounted to 3,896.5 billion roubles (10.0% of GDP), which is 58.9 billion roubles or 1.5% more than the sum forecast for 2009.
The bulk of the tax revenues of the Federal Budget came from the revenues from the value added tax (52.6% of the total amount of tax revenues), the mining tax (25.2%), the single social tax entered in the Federal Budget (13.1%) and the tax on the profits of organisations (5.0%).
2. The non-tax revenues of the Federal Budget in 2009 amounted to 3,433.7 billion roubles (8.8% of GDP), which is 568.1 billion roubles or 19.8% more than the 2009 forecast. Revenues from customs duties accounted for 73.1% of non-tax revenues.
III. Federal Budget spending
The total cash spending of the Federal Budget in the report period was 9,660.1 billion roubles, or 97.2% of the updated budget target. The cash non-interest spending of the Federal Budget in 2009 amounted to 9,483.9 billion roubles or 97.4% of the updated budget target.
The cash spending on the implementation of priority national projects in the report period amounted to 394.8 billion roubles (99.5% of the updated budget target), of which by project:
(billion roubles, in % of updated itemized budget)
|
Name of Priority National Project |
2009 |
|
Healthcare |
126.7 (99.2) |
|
Affordable and comfortable housing for Russian citizens |
239.2 (99.7) |
|
Education |
28.9 (98.7) |
In addition, 165.0 billion roubles (99.9% of the updated budget target) was spent in 2009 on the project State Programme of the Development of Agriculture and Regulation of the Markets of Agricultural Products, Raw Materials and Food in 2008-2012.
III. The national debt as of January 1, 2010 was 3,233.1 billion roubles, an increase by 541.1 billion roubles compared with January 1, 2009.
As of January 1, 2010 the Reserve Fund stood at 1,830.5 billion roubles and the National Welfare Fund at 2,769.0 billion roubles.
2. Draft federal law On Introducing Amendments to the Federal Law On the Federal Budget for 2010 and for the Planning Period of 2011 and 2012
The draft federal law On Introducing Amendments to the Federal Law On the Federal Budget for 2010 and for the Planning Period of 2011 and 2012 has been submitted by the Finance Ministry of Russia
The draft law approves the main characteristics of the 2010 Federal Budget updated in accordance with the change in the expected results of social and economic development of the Russian Federation in 2010:
(in billion roubles)
|
Indicator |
Budget law |
Draft law |
Change (+/-) |
|
Revenues, total |
6,950.0 |
7,783.8 |
833,8 |
|
% of GDP |
16.1 |
17.3 |
1.2 |
|
Oil and gas revenues |
3,194.7 |
3,744.3 |
549.6 |
|
% of GDP |
7.4 |
8.3 |
0.9 |
|
Non-oil and gas revenues |
3,755.3 |
4,039.5 |
284.2 |
|
% of GDP |
8.7 |
9.0 |
0.3 |
|
Spending |
9,886.9 |
10,212.4 |
325.5 |
|
% of GDP |
22.9 |
22.7 |
-0.2 |
|
Deficit |
-2,936.9 |
-2,428.6 |
508.3 |
|
% of GDP |
6.8 |
5.4 |
-1.4 |
|
Upper limit of state internal debt of the Russian Federation at the end of the year |
3,353.1 |
3,726.7 |
373.6 |
|
Upper limit of the state external debt of the Russian Federation at the end of the year (billion USD, billion euros) |
63.3 (45.2) |
53.0 (39.3) |
-10.3 (-5.9) |
The draft law envisages an increase of the total revenues by 833.8 billion roubles, or 1.2% of GDP, mainly due to the increase of oil and gas revenues.
Although the total Federal Budget spending increases by 325.5 billion roubles, its share of GDP goes down by 0.2% and will amount to 22.7% of the updated volume of GDP.
The Federal Budget deficit will amount to 2,428.6 billion roubles or 5.4% of GDP, which is 508.3 billion roubles or 1.4% down on the level approved by the Budget Law (0.5% below the 2009 level).
3. Implementation of the Budget of the Pension Fund of the Russian Federation for 2009
The draft federal law On Implementation of the Budget of the Pension Fund of the Russian Federation for 2009 has been submitted by the Ministry of Healthcare and Social Development of Russia.
The actual implementation of the Fund's budget in 2009 was, for revenue, 3,222.6 billion roubles (101.9% of budget allocations) and for spending, 3,008.6 billion roubles (98.5%).
Transfers from the Federal Budget to the Fund, in accordance with the laws of the Russian Federation, were made in the full amount of 1,944.2 billion roubles, of which 984.4 billion roubles for the payment of the basic part of the labour pension, 560.5 billion roubles for state-provided pensions, additions to pensions, additional financial benefits, allowances and other social payments, and 399.3 billion roubles to cover the Fund's budget deficit.
The Federal Budget resources transferred to the Fund for the purpose of monthly payments and the payment of additional monthly benefits (to the disabled, veterans, Heroes of the Soviet Union, Heroes of the Russian Federation and other categories of citizens) amounted to 272.74 billion roubles (100% of budget allocations).
The revenues of the Fund's budget connected with the collection of funds to finance the accumulated part of the labour pensions stood at 282.9 billion roubles (98% of budget allocations) in 2009, of which insurance premiums towards the accumulated part of the labour pension accounted for 266.6 billion roubles (102.6% of budget allocations).
Pursuant to the government's executive order the Finance Ministry in 2009 transferred to the Fund's budget 9.7 billion roubles from the Federal Budget to compensate for the losses incurred when the Fund invested insurance contributions to finance the accumulated part of the labour pension in 2007.
Pension savings during the report period increased by 250.8 billion roubles (by 1.3 times) to 975.8 billion roubles as of January 1, 2009. That include 414.2 billion roubles of pension savings transferred into trust management to managing companies, of which 401.6 billion roubles to the state managing company (VEB); the pension savings not transferred into trust management to managing companies account for 561.6 billion roubles, of which 308 billion roubles have been temporarily placed in the types of assets allowed under the laws of the Russian Federation.
In 2009 the Fund's budget received 2.6 billion roubles in additional insurance premiums as part of the programme of government co-financing of pensions.
The cost of financing mandatory pension insurance increased by 527.1 billion roubles on 2008 to 2,976.5 billion roubles (100% of the budget allocations) in 2009, of which 2,373.8 billion roubles or 99.6% of budget allocations was used to pay labour pensions.
As of March 1, 2009 the basic part of the labour old age pension was set at 1,950 roubles, an increase of 8.7%, and as of December 1, at 2,562 roubles, an increase of 31.4%. Simultaneously all the other basic parts of labour pensions (old-age, disability and loss of breadwinner cases) have been raised.
Beginning from August 1, 2009 the insurance part of the labour pension was increased by 7.5% and since April 1, 2009 the insurance part of the labour pension was raised by a further 17.5%.
As a result of the measures to increase pensions carried out in 2009 the average size of the old-age labour pension increased by 1,720 roubles, or 35%, to 6,630 roubles at year's end.
The size of monthly payments to the disabled, veterans and other categories of citizens increased by 13% as of April 1, 2009.
At the end of 2009 the total incomes, including the statutory monthly payments and additional monthly benefits for disabled and World War II veterans, amounted to 20,000 roubles (up by an average 4,700 roubles); for the disabled who hold the Leningrad Siege Survivor badge, 14,000, an increase of 3,400 roubles on average.
The current expenditures of the Fund amounted to 61.9 billion roubles, or 97.7% of budgetary allocations. The cost of the upkeep of the Fund's agencies in 2009 was 59.8 billion roubles (97.9% of the budgeted figure) or 2.0% of the Fund's total spending (compared to 2.1% in 2008).
In 2009 the Fund reported a deficit of 36.8 billion roubles under current obligations and a surplus of 250.8 billion roubles for the accumulated part of the budget.
Pensions in 2009 grew faster than wages.
The average annual labour old-age pension exceeded the pensioner's minimum subsistence level by more than 1.3 times. The average social pension at the end of the year matched the pensioner's minimum subsistence level in the Russian Federation at 4,245 roubles.
4. Draft federal law On Introducing Amendments to the Federal Law On the Budget of the Pension Fund of the Russian Federation for 2010 and for the Planning Period of 2011 and 2012
The draft federal law has been submitted by the Ministry of Economic Development.
The draft law would amend articles of the Federal Law On the Budget of the Pension Fund of the Russian Federation for 2010 and for the Planning Period of 2011 and 2012 and supplement thereto to change the volume of inter-budgetary transfers from the Federal Budget to the Pension Fund of the Russian Federation in 2010.
The changes include:
- an increase in Federal Budget allocations to pay additional social benefits to the pension from 23.18 to 31.97 billion roubles (+8.79 billion roubles) because of the adjustment, compared with the budget assumptions, of the number of pensioners eligible for federal social additions to the pension and the average size of the benefit to 1,002 roubles (versus 923.6 roubles according to the budget).
- a 4.3 billion roubles increase of inter-budgetary transfers from the Federal Budget to support compensation payment to persons taking care of disabled people through redistribution of budget allocations for financial support of valorisation of the calculated pension capital.
- an increase in Federal Budget allocations to pay a second pension to members of the families of dead servicemen from 286,584.31 million roubles to 286,611.07 million roubles (+26.76 million roubles).
- to provide financial support through inter-budgetary transfers from the Federal Budget in 2010 to pay the cost of the services of agencies (organisations) with which the Fund has signed agreements on mutual recognition of signatures, for acceptance and electronic transfer to the Fund of applications of insured persons to voluntarily enter legal relations of mandatory pension insurance in order to pay additional insurance premiums into the accumulated part of the labour pensions and copies of payment documents confirming the payment thereof, the Fund will get 7,791.800 roubles out of the Federal Budget for the purpose of distribution of budget allocations intended to cover the Fund's budget deficit for the above stated purposes.
- because the approved budget of the Fund for 2010 is balanced in terms of revenue and spending in the part not connected with the formation of the accumulated parts of labour pensions, the deficit in that part of the Fund's budget in the amount of 7,791,800 roubles is to be covered by the leftover of the Fund's budget as of January 1, 2010 in the part unconnected with the formation of the accumulated part of labour pensions.
5. Implementation of the Social Insurance Fund Budget for 2009
The draft federal law On Implementation of the Social Insurance Fund Budget for 2009 has been introduced by the Ministry of Healthcare and Social Development.
The actual implementation of the Fund's budget for 2009 was 440.0 billion roubles in revenue (97.4% of the budget allocations) and 448.5 billion roubles in expenditure (99.0%). Budget implementation in 2008 was 98.5% for revenue and 97.4% for expenditure.
The Single Social Tax transferred to the Fund in 2009 amounted to 224.0 billion roubles, or 95.6% of the target (96.5% in 2008). Other taxes (collected under a simplified scheme, imputed income tax, etc) accounted for 19.7 billion roubles, or 84.2% of the target (101.3% in 2008).
Insurance premiums for social insurance against occupational accidents and diseases amounted to 57.6 billion roubles, or 102.6% of the target (105.2% in 2008). The insurance premium collection factor was 99.7% as against the targeted 96.9%. The average weighted insurance premium tariff by sector was 0.51% versus 0.54%.
The main part of the Fund's spending (287.3 billion roubles or 65.3% of the total spending; 62.6% in 2008) was used to pay temporary disability, maternity and childbirth benefits, care of the child in the first 18 months and other mandatory social insurance payments.
In 2009 these spending items amounted to 100.9% of the budget targets (98.4% in 2008). The biggest growth was of temporary disability allowances (up 12.8% on 2008) due to the increased number of paid sick days and the increased average daily size of the benefit.
About 19.5 billion roubles, or 99.8% of the target, was used for children's health. That money was made available to 4.9 million children of insured citizens.
The cost of convalescence at sanatoria and holiday resorts after stationary treatment was 4.7 billion roubles or 99.3% of the target. 189,200 vouchers have been paid for.
Insurance payments and other costs involved in mandatory social insurance against occupational accidents and diseases in 2009 amounted to 52.9 billion roubles or 94.7% of the budget target, which is mainly because the number of victims of occupational injuries turned out to be less than forecast.
In 2009 the Federal Budget financed the Fund's spending to pay statutory allowances to citizens exposed to radiation, radiation accidents and nuclear tests, and to provide government support to certain categories of citizens in getting vouchers to sanatoria and health resorts, to provide technical means of rehabilitation to disabled people, to pay childcare allowance to non-working citizens in the first 18 months since the child's birth. The full amount earmarked for that purpose, 60.4 billion roubles, has been transferred to the Fund from the Federal Budget.
The Fund's budget deficit in 2009 was covered in the amount of 70.7 billion roubles out of the Federal Budget, which is 30.2 billion roubles more than initially planned.
In 2009 the Fund used the money of the Federal Mandatory Medical Insurance Fund to finance medical assistance to women in the pre-natal and post-natal periods as well as outpatient medical assistance to working citizens: a total of 16.8 billion roubles or 99% of targeted allocations.
In 2009 the Fund saved 13.8 billion roubles or 97.9% of budgetary target on the upkeep of its governing bodies (that share was 3.1% of the total spending). The economy was mainly achieved by optimising expenditure in connection with the Fund's budget deficit.
During 2009 the Fund implemented its budget with a 8.5 billion rouble deficit. The Fund's budget deficit is financed by the money remaining from the mandatory social insurance payments as of January 1, 2010.
In 2009 the Fund fulfilled its social insurance obligations and the functions delegated to it by the state.
The Fund's spending to finance 16 public statutory obligations amounted to 360.2 billion roubles (80% of the total spending), which is 20% more than in 2008.
6. Implementation of the Budget of the Federal Mandatory Medical Insurance Fund for 2009
The draft federal law On the Implementation of the Budget of the Federal Mandatory Medical Insurance Fund for 2009 has been submitted by the Ministry of Healthcare and Social Development.
The actual implementation of the Fund's budget in 2009 was 126.6 billion roubles in revenue (106.3% of the budget target) and 130 billion roubles in expenditure (114%). In 2008 the Fund reported revenues of 162.6 billion roubles (124.5%) and expenditure of 168.7 billion roubles (126.8%).
The Single Social Tax transferred into the Fund's budget amounted to 88.8 billion roubles in 2009, which is 96.3% of the target (101.2% in 2008).
Other taxes (collected under the simplified scheme, the imputed income tax, etc.) amounted to 0.978 billion roubles, or 78.7% of the target (99% in 2008).
The drop in the revenues from the Single Social Tax was due to the wage fund indicator falling short of the target.
The Federal Budget transferred to the Fund's budget 37.9 billion roubles in targeted financing (for free).
That sum exceeds the amount of inter-budgetary transfers (25.5 billion roubles) approved by the Federal Law On the Fund's Budget for 2009 by 12.4 billion roubles which, under Clause 4, Part 4, Article 4 of the said law are included in the aggregate budget itemisation of the Fund's expenditure.
The Federal Budget has disbursed all the targeted sums for:
- medical checkups of orphans and children in difficult circumstances staying in inpatient establishments, 0.6 billion roubles;
- mandatory medical insurance of non-working population (children), 3.8 billion roubles;
- additional medical checkups of workers, 4 billion roubles;
- the cost to compensate for shortfalls of tax revenue for the Fund's budget, 17.1 billion roubles;
- transfers to the budgets of regional mandatory medical insurance funds to finance regional programmes of state guarantees of free medical care to citizens of the Russian Federation, 12.4 billion roubles.
The Fund's spending in 2009 amounted to 130 billion roubles.
The Fund's subsidies to level out the financial status of regional mandatory medical insurance funds as part of the basic MMI programme amounted to 91.6 billion roubles (70.5% of the total spending).
The Federal Budget allocated 12.4 billion roubles to finance the regional programmes of state-guaranteed free medical care.
The MMI of non-working population (children) stood at 3.8 billion roubles or 100% of the budget target.
Medical assistance to women during pregnancy, childbirth and in the post-natal period, as well as medical checkups of the child in the first twelve months cost 17 billion roubles (100%). The spending under this item in 2008 was 16.6 billion roubles.
Implementation of the Healthcare Priority National Project, including:
- additional medical checkups of working individuals, 3.8 billion roubles (94.7% of target);
- medical checkups of orphans and children in difficult circumstances staying in inpatient establishments, 0.8 billion roubles (versus 0.5 billion roubles in 2008).
Completing settlements for financial support of the additional medical benefits target (benefits to doctors and nurses), 1.8 billion roubles (subventions were released in the 1st quarter of 2009 out of the resources left over by January 1, 2009 in the Fund's budget due to incomplete use of 2008 budget allocations for the same purposes).
The expenditure on financial and material technical support of the Fund's activities and computerisation of the MMI system was 0.6 billion roubles.
The balances in the Fund's accounts as of late 2009 were 7.8 billion roubles, including 5 billion roubles earmarked under the federal law On Introducing Amendments to the Federal Law On the Budget of the Federal Mandatory Medical Insurance Fund in 2009 and the Planning Period of 2010 and 2011 in order to preserve at the 2009 level the size of subsidies transferred in 2010 out of the Fund's budget to the budgets of the regional MMI funds to pay for the territorial MMI programmes in the framework of the basic MMI programme.
7. Progress in implementing federal targeted programmes and the Federal Targeted Investment Programme in the 1st Quarter of 2010
The report on the implementation of the federal targeted programmes (FTPs) and the Federal Targeted Investment Programme (FTIP) in the 1st quarter of 2010 has been submitted by the Ministry of Economic Development jointly with the Finance Ministry and the Ministry of Education and Science.
1. The results of the implementation of FTPs in the 1st quarter of 2010 are as follows:
1.1. The total financing of 53 FTPs amounts to 741.2 billion roubles.
During the 1st quarter of 2010 the Federal Budget disbursed 84.3 billion roubles (11.4% of the budget target for 2010 versus 8.8% in the same period of 2009) to finance FTPs.
1.2. In the report period 5,648 long-term contracts and 1,397 contracts signed since the beginning of 2010 worth 369.7 billion roubles were implemented (49.9% of the budget targets for 2010 versus 41.3% in the 1st quarter of 2009).
Since the beginning of 2010, 91.4 billion roubles worth of contracts have been signed, which is 12.3% of the 2010 budget target.
The percentage of government contracts signed is in excess of 70% of the annual budget target under eight programmes. For another 17 FTPs the signing of contracts exceeds the average level (49.9%).
1.3. Joint financing of the programmes out of the regional and local budgets as well as off-budget sources in the 1st quarter of 2010 is envisaged for 44 FTPs and amounts to 90.7 billion roubles, or 6.0% of the yearly target, of which the budgets of the Russian regions and local budgets contributed 10.0 billion roubles (4.6%) and off-budget sources, 80.7 billion roubles (6.3%).
For the sake of comparison, in the 1st quarter of 2009 the actual contribution to the financing of federal targeted programmes out of all sources was 69.3 billion roubles, or 5.6% of the annual target, of which the regional budgets and local budgets contributed 23.48 billion roubles (6.5%) and the off-budget sources 45.82 billion roubles (5.3%).
1.4. The Ministry of Economic Development, after a comprehensive analysis of the implementation of FTPs in the 1st quarter of 2010, assessed the effectiveness of the implementation of FTPs.
The implementation can be qualified as highly effective for five federal targeted programmes.
For 17 federal targeted programmes the performance of government agencies is assessed as above average, and for 27 federal targeted programmes the work of the state bodies responsible has been described as adequate.
The implementation of three FTPs has been assessed as ineffective.
2. The results of the implementation of FTIP in the 1st quarter of 2010 are as follows:
2.1. In the report period the Federal Budget funding of construction projects and other activities (including design and exploratory work) under FTIP amounted to 47.9 billion roubles, or 9.4% of the total budget investments allocated for the implementation of FTIP in 2010. The figure in the 1st quarter of 2009 was 7.4%.
2.2. The FTIP is financed in accordance with the List of Construction Sites and Facilities for Federal Needs for 2010 approved by a government executive order, which includes 1697 construction and other projects and activities (2276 in 2009).
In 2010, 746 facilities are to become operational, which is 43.8% of their total number, and the development of project documentation for 89 construction sites and facilities included in the list is to be completed.
According to the Russian Statistical Agency Rosstat, four objects envisaged under the FTIP Programme have been launched in the report period.
8. Draft federal law On Introducing Amendments to the Federal Law On Placing Orders for the Supply of Goods, Work Performance and Delivery of Services for State and Municipal Needs
The draft federal law has been submitted by the Ministry of Economic Development.
Under the federal law On Placing Orders for the Supply of Goods and Delivery of Services for State and Municipal Needs the authorised customer may require the deposition of money as security for taking part in the tender. The size of the deposit for bidding may not exceed 5% of the initial (maximum) price of the contract (price of the lot).
The draft law would cut to 2% the maximum deposit for bidders when orders are placed with small enterprises.
The withdrawal of money from the turnover of a small enterprise has a negative impact on the development of small enterprises. Proceeding from Rosstat data, a cut of the deposit for an application from 5% to 2% when placing orders with small enterprises would have saved the small enterprises more than 1.5 billion roubles in the first half of 2009.
9. Draft federal law On Introducing an Amendment to Article 3 of the Law of the Russian Federation On Customs Tariff
The draft federal law has been submitted by the Ministry of Economic Development.
The draft law would give the government of the Russian Federation the right to establish the procedure and formulas of calculating export customs duties for certain categories of exports.
Under Clause 3 of the Law of the Russian Federation On Customs Tariff, the rates of oil export customs duties are set by the government of the Russian Federation depending on the commodity exchange prices. However, the formulas of calculating the export customs duties on other types of exports have not been approved.
The current procedure of setting the rates of export duties does not take into account possible changes of commodity exchange prices and prevents prompt adjustment of the export customs duties.
The world financial crisis, which has brought high volatility to the exchange prices for the main Russian exports, has revealed flaws in the use of flat rates with regard to certain types of goods that are traded in commodity exchanges.
The adoption of the draft law would require the Russian government to issue a resolution On Approving the Procedure and Formulas of Calculating the Rates of Export Customs Duties for Certain Categories of Goods and the List of Goods with Respect to Which Such Procedure and Formulas Are Used.
Considering the ongoing dynamics of change of commodity prices for a number of goods that are traded in exchanges, notably non-ferrous metals, raw materials for ferrous metallurgy, the introduction of this law would make it possible to apply customs tariff regulation measures in a more flexible and expeditious manner.
10. Draft federal laws On the Handover to Religious Organisations of Religious Property in Federal or Municipal Ownership and On Introducing Amendments to Certain Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law On the Handover to Religious Organisations of Religious Property in Federal or Municipal Ownership
The draft federal laws have been submitted by the Ministry of Economic Development.
The draft laws are aimed at implementing the provisions of the federal law On Freedom of Conscience and on Religious Associations (Clause 3, Article 21; Clause 2, Article 22) and the federal law On the Objects of Cultural Heritage (Historical and Cultural Monuments) of the Peoples of the Russian Federation (Clause 2, Article 50; Clause 1, Article 56) on granting religious organisations the right to freely receive as property or freely use religious property in state or municipal ownership in accordance with the goals of the religious organisation determined by its charter.
At present religious property is transferred into ownership or free use by religious organisations under the Regulations On the Transfer to Religious Organisations of Religious Objects that Are Federal Property approved by Resolution No.490 of the Government of the Russian Federation of June 30, 2001.
The draft federal law On the Transfer to Religious Organisations of Religious Property in State or Municipal Ownership would establish the procedure of the transfer of religious property into the ownership or free use of religious organisations from federal property, the property of the constituent entities of the Russian Federation or municipal property.
Because a considerable part of religious property is objects of the cultural heritage (historical and cultural monuments) of the peoples of the Russian Federation the draft law establishes that the transfer of such objects should be in compliance with the provisions of the laws of the Russian Federation on cultural heritage objects.
The draft law does not regulate the transfer of religious property items that represent museum objects and collections which are part of the Museum Fund of the Russian Federation or documents which form part of the Archive Fund of the Russian Federation or the National Library Fund.
11. Draft federal law On Introducing Amendments to the Law of the Russian Federation On the Organisation of Insurance in the Russian Federation
The draft law has been submitted by the Finance Ministry of Russia.
The draft federal law changes the requirements to the quality of the structure of the capital of the insurers, determines the procedure of the transfer of the insurance portfolio in the event of change of the insurer in the insurance contract, improves accounting and reporting of insurance agencies and lays the groundwork for the introduction at the insurance organisations of a system of internal control and internal audit to make risk management more effective.
The draft law introduces a number of concepts characterising the financial stability of insurers consistent with the international practice of regulating insurance activities and the International Financial Reporting Standards (IFRS). Thus the concept of "own resources" has been replaced with the concept of "own capital", and concepts of "subordinated loans", "internal control", "internal audit", and "specialised reporting" have been introduced.
The draft law would allow an insurance organisation to avail itself of a subordinated loan, a long-term debt instrument that can quickly increase the insurer's capitalisation. This instrument can be used as a measure to strengthen the financial stability of insurers and rehabilitate them financially.
The draft law also envisages possible monitoring of the financial status of insurers by applying an established list of financial indicators (coefficients) approved by an insurance supervision agency by agreement with the insurance regulatory agency. That measure seeks to insure objective assessment of the performance of insurers, their financial stability and solvency and to make control of insurance by the insurance supervisory agency more effective by providing it with an instrument of choosing the forms and methods of supervision, including the classification of insurers into groups depending on the risk factors that influence their activities and the application of prudential supervision measures.
The draft federal law extends the provision of the law of the Russian Federation On the Organisation of Insurance in the Russian Federation regarding the formation by the insurers of a Preventive Measures Fund (PMF), defines the source from which the PMF is formed (net profit) and the duty of insurers to approve the procedure of forming and using the PMF in the regulations on the formation of the preventive measures fund and the implementation of preventive measures by an insurance organisation.
In addition, the draft law envisages the compilation and submission by insurers of consolidated financial reports to the insurance supervisory body. This provision seeks to insure compliance with the principles and standards of the International Association of Insurance Supervisors (IAIS) of the need for control and supervision of the activities of insurance groups, financial groups with the participation of insurance organisations and financial conglomerates with the participation of insurance groups and would lay the foundation for further development of the forms and methods of supervising the activities of the said groups and conglomerates whose appearance is part of the current economic integration processes.
In accordance with IAIS principles and standards, the main principles of internal control and internal audit are established within insurance organisations with the aim of more effective risk management and securing the insurer's compliance with the laws of the Russian Federation, with the rules (standards) of professional activities accepted by professional associations, unions, and insurers' associations.
The draft law adjusts the provisions of the Law of the Russian Federation On the Organisation of Insurance in the Russian Federation regarding accounting and reporting by insurers. It elucidates the concept of specialised reporting of insurers submitted to the insurance supervision body and lists the information disclosed in such reporting.
The draft law furthermore elaborates on the procedure of mandatory audit of insurers, in particular, by making it obligatory for the audit organisation, following an annual mandatory audit of the insurer, to submit not only an auditor's statement, but also a statement on the insurer's compliance with the requirements of financial stability and solvency, the state of its internal control, as well as establishing uniform requirements to the publication of insurer's reports. The composition of the insurer's reports and the procedure of the publication thereof will be established by the insurance regulatory body.
12. Draft federal law On Introducing Amendments to the Law of the Russian Federation On Education and the Federal Law On Higher and Further Professional Education as regards the improvement of the Single State Examination
The draft federal law has been introduced by the Ministry of Education and Science.
The draft law is aimed at improving the organisation and holding of the Single State Examination and enrolment of applicants at higher education institutions based on its results, including strict confidentiality of the control and measuring materials in the conduct of the examinations, the introduction of the institution of public invigilators during the conduct of the Single State Examination, and the requirement that all licensed higher education institutions admit applicants based on the results of the Single State Examination.
The draft law reformulates the relevant authorisations of the federal executive bodies in the field of education and certain functions performed by the executive bodies of the constituent entities of the Russian Federation in exercising their powers of organising and holding Single State Examinations.
13. Draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the Federal Council of the Swiss Confederation on Simplifying the Issue of Visas to the Citizens of the Russian Federation and the Swiss Confederation
The draft federal law has been submitted by the Foreign Ministry of Russia.
The Agreement between the Government of the Russian Federation and the Federal Council of the Swiss Confederation on Simplifying the Issue of Visas to the Citizens of the Russian Federation and the Swiss Confederation was signed in Bern on September 21, 2009.
The aim of the Agreement is to liberalise the regime of mutual travel by citizens. The Agreement envisages simplified procedures for the issue of one-time visas for a period of up to three months as well as multiple visas for certain categories of citizens, introduces uniform visa duties and clearly regulates the time period of the issue of visas.
The draft law is subject to ratification in accordance with subclause "a", Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.
The implementation of the Agreement does not require the introduction of any amendments to the federal laws of the Russian Federation On the Procedure of Exit from the Russian Federation and Entry into the Russian Federation and On the Legal Status of Foreign Citizens in the Russian Federation.
14. Draft federal law On Ratification of the Agreement on Mutual Administrative Assistance between the Customs Agencies of the Member States of the Customs Union
The draft federal law has been introduced by the Ministry of Foreign Affairs and the Federal Customs Service of Russia.
The draft federal law envisages ratification of the Agreement on Mutual Administrative Assistance of Customs Agencies of Customs Union Member States signed in St Petersburg on May 21, 2010.
The Agreement, developed to implement Chapter 17 of the Customs Code of the Customs Union, lays down the principles of exchange of information with the aim of compliance with the customs legislation of the Customs Union and the legislations of the member states of the Customs Union, of certain forms of customs control on the instructions of the customs body of another member state of the Customs Union as well as of mutual recognition of the decisions made by the customs agencies of the member states of the Customs Union.
The draft Agreement is subject to ratification in accordance with Article 15 of the Federal Law On International Treaties of the Russian Federation.
15. Signing the Agreement on exemption from certain forms of customs control by the customs agencies of the member states of the Customs Union
The draft government executive order has been submitted by the Federal Customs Service of Russia.
The draft Agreement would exempt from customs inspection the personal luggage of groups of people specified in the Agreement, including the ex-presidents of the Customs Union member states and members of their families accompanying them, the heads of supreme judicial bodies of the Customs Union member states, members of the parliaments of the Customs Union member states and some other categories of citizens.
The draft Agreement is subject to ratification in accordance with Article 15 of the Federal Law On International Treaties of the Russian Federation.
16. Draft federal laws On Submitting for Ratification the
Agreements between the Government of the Russian Federation and the European Community on Financing and Implementation of Border Cooperation Programmes
In 2006 the President of the Russian Federation decided that Russia would take part in the programmes of border cooperation in the framework of the European Neighbourhood and Partnership Instrument (ENPI). According to ENPI implementation rules determined by the EU regulations, to be eligible to take part in ENPI programmes a partner country must sign an agreement with the European Community's Commission on financing and implementation of each of the programmes.
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The draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the European Community on the Financing and Implementation of the Karelia Border Cooperation Programme has been submitted by the Foreign Ministry and the Ministry of Regional Development of Russia.
The draft federal law envisages ratification of the Agreement between the Government of the Russian Federation and the European Community on the Financing and Implementation of the Karelia Border Cooperation Programme signed in Stockholm on November 18, 2009 pursuant to an executive order of the government of the Russian Federation.
The aim of the Agreement is to determine the basic principles of relations between Russia and the European Union in the implementation of the Karelia Border Cooperation Programme which is part of the European Neighbourhood and Partnership Instrument.
The agreement is subject to ratification in accordance with subclause "a", Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.
The provisions of the Agreement comply with the standards of international law and do not contradict the international obligations of the Russian Federation.
Taking part in the programme from the Russian side are the Republic of Karelia, the city of St Petersburg, the Leningrad, Murmansk and Arkhangelsk Regions.
The Russian Federation's financial contribution to the Karelia programme comes from the Federal Budget and amounts to 11.6015 million euros.
The financial contribution of the European Community to the implementation of this programme is 23.2025 million euros.
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The draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the European Community on the Financing and Implementation of the Estonia-Latvia-Russia Border Cooperation Programme has been submitted by the Foreign Ministry and the Ministry of Regional Development of Russia.
The draft federal law envisages ratification of the Agreement between the Government of the Russian Federation and the European Community on financing and implementing the Estonia-Latvia-Russia Border Cooperation Programme signed in Stockholm on November 18, 2009 pursuant to an executive order of the government of the Russian Federation.
The aim of the Agreement is to determine the basic principles of relations between Russia and the European Union in implementing the Estonia-Latvia-Russia Border Cooperation Programme which is part of the European Neighbourhood and Partnership Instrument.
The Agreement is subject to ratification in accordance with subclause "a", Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.
The provisions of the Agreement comply with the norms of international law and do not contradict the international obligations of the Russian Federation.
Taking part in the Estonia-Latvia-Russia Programme from the Russian side are the Leningrad Region, the Pskov Region and the city of St Petersburg. The financial contribution of the Russian Federation to the implementation of the Estonia-Latvia-Russia Programme comes from the federal budget and amounts to 15.909 million euros.
The financial contribution of the European Community to the implementation of this programme is 47.775 million euros.
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The draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the European Community on the Financing and Implementation of the South-East Finland-Russia Border Cooperation Programme has been submitted by the Foreign Ministry and the Ministry of Regional Development of Russia.
The draft federal law envisages ratification of the Agreement between the Government of the Russian Federation and the European Community on financing and implementing the South-East Finland-Russia Border Cooperation Programme signed in Stockholm on November 18, 2009 pursuant to an executive order of the government of the Russian Federation.
The aim of the Agreement is to determine the basic principles of relations between Russia and the European Union in implementing the South-East Finland-Russia Border Cooperation Programme which is part of the European Neighbourhood and Partnership Instrument.
The Agreement is subject to ratification in accordance with subclause "a", Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.
The provisions of the Agreement comply with the norms of international law and do not contradict the international obligations of the Russian Federation.
Taking part in the South-East Finland-Russia Programme from the Russian side are the Republic of Karelia, the Leningrad Region, and the city of St Petersburg.
The financial contribution of the Russian Federation to the implementation of the South-East Finland-Russia Programme comes from the federal budget and amounts to 18.0925 million euros.
The financial contribution of the European Community to the implementation to this programme is 36.1854 million euros.
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The draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the European Community on the Financing and Implementation of the Lithuania-Poland-Russia Border Cooperation Programme has been submitted by the Foreign Ministry and the Ministry of Regional Development of Russia.
The draft federal law envisages ratification of the Agreement between the Government of the Russian Federation and the European Community on financing and implementing the Lithuania-Poland-Russia Border Cooperation Programme signed in Stockholm on November 18, 2009 pursuant to Executive Order of the Government of the Russian Federation No.1549-r of October 17, 2009.
The aim of the Agreement is to determine the basic principles of relations between Russia and the European Union in implementing the Lithuania-Poland-Russia Border Cooperation Programme which is part of the European Neighbourhood and Partnership Instrument.
The Agreement is subject to ratification in accordance with subclause "a", Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.
The provisions of the Agreement comply with the norms of international law and do not contradict the international obligations of the Russian Federation.
Taking part in the Lithuania-Poland-Russia Programme from the Russian side is the Kaliningrad Region.
The financial contribution of the Russian Federation to the implementation of the Lithuania-Poland-Russia Programme comes from the federal budget and amounts to 43.999 million euros.
The financial contribution of the European Community to the implementation to this programme is 132.130 million euros.
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The draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the European Community on the Financing and Implementation of the Kolarctic Border Cooperation Programme has been submitted by the Foreign Ministry and the Ministry of Regional Development of Russia.
The draft federal law envisages ratification of the Agreement between the Government of the Russian Federation and the European Community on financing and implementing the Kolarctic Border Cooperation Programme signed in Stockholm on November 18, 2009 pursuant to an executive order of the government of the Russian Federation.
The aim of the Agreement is to determine the basic principles of relations between Russia and the European Union in implementing the Kolarctic Border Cooperation Programme which is part of the European Neighbourhood and Partnership Instrument.
The Agreement is subject to ratification in accordance with subclause "a", Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.
The provisions of the agreement comply with the norms of international law and do not contradict the international obligations of the Russian Federation.
Taking part in the Kolarctic Programme from the Russian side are the Murmansk Region, the Arkhangelsk Region, the Nenets Autonomous Area as well as the Republic of Karelia, the Leningrad Region and the city of St Petersburg.
The financial contribution of the Russian Federation to the implementation of the Kolarctic Programme comes from the federal budget and amounts to 14.120 million euros.
The financial contribution of the European Community to the implementation to this programme is 28.241 million euros.
17. Introducing amendments to certain acts of the Government of the Russian Federation (aimed at enhancing the coordinating role of the Ministry of Regional Development of the Russian Federation in the preparation and implementation of comprehensive projects of social and economic development of the Federal Districts)
The draft resolution would vest the Ministry of Regional Development of Russia with the functions of coordinating the development and implementation of comprehensive projects of social and economic development of federal districts.
In this connection the relevant amendments are proposed to resolutions of the government of the Russian Federation On the Ministry of Regional Development of the Russian Federation, On Some Aspects of the Activities of the Ministry of Regional Development of the Russian Federation, On the Fund of Remuneration of the Workers of Central Staffs and Territorial Bodies of Federal Executive Bodies, The Statute of the Ministry of Regional Development of the Russian Federation as well as the Rules of Approval of Investment Programmes of Power Energy Facilities with State Participation and Power Grids.
In addition, the draft resolution would annul the executive order of the government of the Russian Federation On the Development, Approval and Implementation of the Programmes of Economic and Social Development of the Constituent Entities of the Russian Federation.
18. Introducing amendments to the statute on the Ministry of Regional Development of the Russian Federation and annulment of Government Resolution No.233 of March 16, 2000
The draft resolution has been submitted by the Ministry of Regional Development of Russia.
The Russian Federation has 43 closed administrative-territorial entities (ZATO). The enterprises and facilities located there are under the jurisdiction of the Ministry of Defence of Russia, the Ministry of Industry and Trade of Russia, Roscosmos and the State Corporation Rosatom. The said agencies exercise with regard to the ZATO under their jurisdiction the functions stipulated under the law of the Russian Federation On the Closed Administrative-Territorial Entity.
Although each ZATO has its specific features, most issues connected with their functioning have a common and comprehensive character and require a systemic approach, orientation towards the future development of the ZATO and towards the interests of the citizens and the state.
This prompts the need to coordinate the activities of the federal executive bodies connected with the functioning of ZATOs.
In accordance with the Resolution of the Government of the Russian Federation On the Coordination of the Activities of Federal Executive Bodies on the Issues of the Functioning of Closed Administrative-Territorial Entities, the Ministry of Economic Development of the Russian Federation has been named as the federal executive body coordinating the activities of other federal executive bodies connected with the functioning of ZATOs and preparation of proposals on the creation, closure, and social and economic development of ZATOs as well as improvement of Russian legislation concerning the functioning of ZATOs.
At the same time closed administrative-territorial entities are municipal entities with the status of an urban area.
In accordance with the resolution of the Government of the Russian Federation On Approving the Statute on the Ministry of Regional Development of the Russian Federation and on introducing amendments to certain acts of the Government of the Russian Federation, the Ministry of Regional Development is the federal executive body that performs the functions of working out state policy and legal regulations in the sphere of the social and economic development of municipal entities.
On the strength of the above the Government Commission for Administrative Reform has decided to make the Ministry of Regional Development of the Russian Federation responsible for coordinating the activities of other federal executive bodies on the issues of creation, closure, and social and economic development of ZATOs as well as improvement of the Russian legislation concerning the functioning of ZATOs.
19. Draft federal law On Introducing Amendments to Some Legislative Acts of the Russian Federation
The draft federal law has been submitted by the Defence Ministry of Russia.
The Draft Federal Law On Defence (Clause 19, Article 6) envisages the authority of the government of the Russian Federation to establish the number of civilian personnel in the Armed Forces of the Russian Federation and other troops.
At the same time, in recent practice the decrees of the president of the Russian Federation establish the total strength of the Armed Forces and the number of servicemen. Thereby the number of civilian personnel is established as the difference between the two above values. This makes redundant the decisions of the government establishing the number of civilian personnel in the Armed Forces.
The draft law introduces amendments to the federal laws concerning the transfer of such powers to the president of the Russian Federation and defines more precisely the powers of the Defence Minister to determine the list of military positions that can be filled by civilians (with the exception of military positions to be filled by high-ranking officers).
20. The formation of an organising committee for the preparation and holding of the 5th Forum of Creative and Scientific Intelligentsia of the Member States of the Commonwealth of Independent States
The draft executive order of the government of the Russian Federation has been submitted by the Ministry of Education and Science of Russia.
In accordance with the Plan of Activities to Implement the Concept of the Russian Presidency of the Commonwealth of Independent States in 2010 and the Plan of Priority Measures in the Sphere of Humanitarian Cooperation among CIS Member States for 2009-2010, the 5th Forum of Creative and Scientific Intelligentsia of CIS Member States will be held in Moscow in September-October, 2010. The agencies responsible for the event are: the Ministry of Education and Science, the Foreign Ministry, the Ministry of Culture, the Ministry of Sport and Tourism and the Russian Academy of Sciences.
The Forum, which will be attended by more than 500 representatives of scientific and creative organisations, media outlets, youth and non-governmental associations in the CIS countries, will be a highlight of the Year of Science and Innovation in the Commonwealth of Independent States aimed at promoting multilateral humanitarian cooperation within the CIS, strengthening the common cultural, scientific and education space of the CIS and developing interstate cooperation among youth.
The Forum will be financed in accordance with Executive Order of the Government of the Russian Federation No. 303-r of March 9, 2010 out of the resources of the Federal Budget earmarked for the implementation of interstate treaties within the CIS for 2010 disbursed by the Finance Ministry as Russia's voluntary contribution to the implementation of activities of the Interstate Fund of Humanitarian Cooperation among the CIS member states as well as by attracting off-budget sources.
21. The disbursement in 2010-2011 from the Federal Budget of a voluntary targeted contribution to the United Nations Educational, Scientific and Cultural Organisation to finance the restoration of Orthodox churches on the territory of the Kosovo Province (Republic of Serbia)
The draft executive order has been submitted by the Finance Ministry of Russia.
The draft has been prepared pursuant to the instructions of the president of the Russian Federation to the government of the Russian Federation to mobilise the necessary financial, organisational and expert resources to ensure active participation of the Russian Federation in the restoration of Orthodox churches in the Kosovo Province (Republic of Serbia).
Under the draft the Federal Budget would contribute $2 million in 2010-2011 to UNESCO to finance the restoration of Orthodox churches on the territory of the Kosovo Province (Republic of Serbia) of which up to $1 million in 2010 and up to $1 million in 2011.
The Foreign Ministry and the Finance Ministry are to agree with UNESCO the procedure of transferring the said contribution.
In addition the draft issues instructions to the Finance Ministry to transfer to UNESCO in 2010 up to $1 million for the above purposes out of the budget allocations to the Finance Ministry from the Federal Budget for 2010 under the sub-item "International Relations and International Cooperation" of item "General State Issues" in the classification of budgetary spending, and in developing the draft federal budget for 2011 to envisage the necessary budget allocations to finance the corresponding expenditure.
During the course of consultations with UNESCO a list of four architectural Orthodox ensembles in Kosovo, declared to be world heritage sites and in need of restoration work, was agreed: the Decani Monastery, the Monastery of the Archbishop at Peca, the Holy Virgin Leiviska Church and the Gracanica Monastery.
22. The participation of the Russian Federation in the International Monetary Fund Programme to create a regional technical assistance centre in Central Asia
The crisis has had a negative impact on the government finances of Central Asian countries. These changes are attributable to various factors, including the shrinking of foreign trade and the amounts of cash remittances, shortage of liquidity and falling commodity prices. The situation was particularly grave in the first half of 2008 when falling revenues from commodity trade affected the budgets of even the richest countries in the region. As a result, the majority of countries in the region had to seek assistance from international organisations, above all the International Monetary Fund. These countries, jointly with the IMF, have developed programmes to stabilise budgetary spending and implement structural reforms.
In the light of the above and to maintain dynamic growth and raise living standards in the region four comprehensive economic problems must be solved, according to the IMF: to strengthen the foundations of macroeconomic stability, to ensure the stability of the tax and budget sphere simultaneously with creating opportunities for increasing social and infrastructure spending, to diversify the economic base and ensure the development of financial markets.
The creation by the IMF of a new regional technical assistance centre in Central Asia will contribute to solving the above problems and to expanding regional economic integration.
The creation of the Centre will enable the IMF to render targeted, flexible technical assistance that reacts promptly to the recipients' needs and to ensure the training of personnel taking into account the needs of the region. The Centre's activities will cover Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan and Uzbekistan by providing additional technical assistance at critical stages of economic development of these countries.
Initially the Centre's activities will be focused on six key areas: managing government finances, revenue collection system, development of the financial sector, bank supervision and regulation, personnel training in the field of finances and macroeconomics with emphasis on managing natural resources, and macroeconomic statistics.
The Centre will be patterned on existing IMF technical assistance regional centres. The Centre's work plans will be coordinated with country programmes of reform, supervision and crediting by the IMF as well as the IMF's regional strategy in the field of technical assistance to the Central Asian region.
An agreement has been reached that the Centre will be located in Tashkent, Uzbekistan. The total cost of opening and running the Centre in the first five years will be about $49 million, according to the IMF. Uzbekistan, jointly with the IMF, plans to allocate about $10 million, the UK $15 million and Switzerland $5 million. Financial contributions to the Centre may be made by China, Japan, the European Union, Kazakhstan, the Kuwait Development Fund as well as other donor and recipient countries.
Russia's participation in the Programme will help to promote Russian experience and to involve experts in the work of the Centre as well as to promote the Russian language as the language of communication within the expert community. In addition, the measures aimed at strengthening the economies of countries, improving the system of government finance management, and developing the financial sector will in the future reduce the risks of financial and economic crises similar to the present one in the countries that are Russia's neighbours, in particular Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
Moscow,
June 10, 2011
* Press releases by the Department of Press Service and Information contain the materials submitted by the executive federal bodies for discussion by the government of the Russian Federation.