Speaker
Alexei Kudrin - Deputy Prime Minister and Minister of Finance
2. On amendments to the federal laws on the budgets of the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, and the Federal Compulsory Medical Insurance Fund for 2008 and for the planned period of 2009-2010.
Speaker
Tatyana Golikova - Minister for Health and Social Development
3. On the establishment of the Government Commission on Control over Foreign Investments in the Russian Federation.
Speaker
Sergei Sobyanin - Deputy Prime Minister and Chief of the Government Office
PRESS RELEASE*
The following issues are to be discussed at the meeting of the Government Presidium on June 2, 2008:
1. On the draft federal law On Amendments to the Federal Law On the Federal Budget for 2008 and for the Planned Period of 2009 and 2010.
The draft federal law On Amendments to the Federal Law On the Federal Budget for 2008 and for the Planned Period of 2009 and 2010 has been prepared on the basis of the report on federal budget implementation for the first quarter of 2008, the forecast of the implementation of the federal budget for 2008 and an adjusted forecast for socio-economic development of the Russian Federation within the planned period of 2009 and 2010.
Pursuant to the draft law, the federal budget revenues will amount to 8,965.7 billion roubles in 2008 (21.23% of GDP), 9,518.3 billion roubles in 2009 (19.58% of GDP), and 10,402.4 billion roubles in 2010 (18.68% of GDP).
Oil and gas revenues in the federal budget will amount to 4,249.0 billion roubles in 2008 (10.06% of GDP), 3,640.2 billion roubles in 2009 (7.49% of GDP), 3,630.9 billion roubles in 2010 (6.52% of GDP), which is 778.3 billion roubles more than the main performance figures of the federal budget for 2008, 531.7 billion roubles more than the figures for 2009, and 639.9 billion roubles more than the figures for 2010, as approved by the Federal Law On the Federal Budget for 2008 and for the Planned Period of 2009 and 2010" (as amended by the Federal Law of March 3, 2008, No. 19-FZ).
The increases of oil and gas revenues will amount to 130.5 billion roubles in 2008, to 280.4 billion roubles in 2009, and to 354.3 billion roubles in 2010.
Aggregate balance on the federal deficit financial resources in 2008 will amount to 170.3 billion roubles, which is 10.1 billion roubles less than the figures specified by the Federal Law On the Federal Budget for 2008 and for the Planned Period of 2009 and 2010" (as amended by the Federal Law of March 3, 2008, No. 19-FZ).
The draft law suggests that the total federal budget expenditures as compared with the approved amount shall be increased by 120.4 billion roubles in 2008 (1.7%), 463.9 billion roubles in 2009 (5.6%), and 632.7 billion roubles in 2010 (7.0%).
Moreover, pursuant to Clause 2 of Article 213 of the Fiscal Code of the Russian Federation, an increase in the gross volume of the federal budget revenues within the planned period (exclusive of oil and gas revenues on assets management of the Reserve Fund and the National Welfare Fund) shall be allocated for reducing the federal budget deficit (provided it is approved with a deficit) or to a correspondent increase in conditionally approved expenditures.
Therefore, the draft law contains provisions for an increase in conditionally approved expenditures from 1,017.6 billion roubles (12.3% of the gross volume of fiscal expenditures) up to 1,481.5 billion roubles in 2009 (16.9%), and from 1,349.2 billion roubles (14.9%) to 1,981.9 billion roubles in 2010 (20.5%).
In accordance with the requirements of the Fiscal Code of the Russian Federation, the stated financial resources shall be allocated in the course of work on the draft federal law On the Federal Budget for 2009 and for the Planned Period of 2010 and 2011". In accordance with Article 1841 of the Fiscal Code of the Russian Federation, the conventionally approved (not apportioned) expenditures of 2010 shall thereby amount to no less than 2.5% of the total volume of the federal budget expenditures (no less than 241.7 billion roubles).
Taking all of the above into consideration, the draft law contains provisions for an increase in budgetary allocations in 2008 in the amount of 287.8 billion roubles, particularly, on account of the following:
Thus, the changes introduced by the draft law provide for the federal budget balance in 2008 and within the planned period of 2009 and 2010.
2. On amendments to the federal laws on the budgets of the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, and the Federal Compulsory Medical Insurance Fund for 2008 and for the planned period of 2009 and 2010.
Draft of the law On Amendments to the Federal Law On the Budget of the Pension Fund of the Russian Federation for 2008 and for the Planned Period of 2009 and 2010 has been prepared in accordance with the Fiscal Code of the Russian Federation and Article 18 of the Federal Law On Compulsory Pension Insurance in the Russian Federation.
The draft law provides for amendments to the main parameters of the Fund's budget for 2008 and for the planned period of 2009 and 2010 in the context of adjustments made to the forecast of the social and economic development of the Russian Federation in 2008, 2009 and for the planned period of 2010 and 2011, as well as in line with the decisions made on increasing in the pensions, allowances and welfare payments in accordance with the anticipated level of consumer prices.
The Federal Law On the Budget of the Pension Fund of the Russian Federation for 2008 and for the Planned Period of 2009 and 2010 is subject to the following amendments.
1. In 2008 allocations from the federal budget to the budget of the Russian Federation Pension Fund were increased, including allocations:
Upward revision of budgetary allocations for the above purposes is due to adjustment of the number of eligible recipients and average base work pension rate in accordance with the data provided in the state statistical reports.
2. Pursuant to the Presidential Decree On Additional Measures of Rendering Social Assistance to Individuals Looking after the Incapacitated, from July 1, 2008 the amount of monthly compensation shall increase from 500 to 1,200 roubles. In connection with this, the amount of the federal budget funds to be transferred to the Russian Federation Pension Fund budget to pay compensations to individuals looking after the incapacitated shall increase from 2.84 to 7.65 billion roubles (+4.81 billion roubles) with due regard for the increased number of people eligible for such compensation.
3. Following upward revision of 2008 inflation outlook from the budgeted 8.5% to 10.5%, budgetary allocations to cover monthly payment to certain categories of citizens were increased for a total of 4.71 billion roubles.
4. Expenditure to cover early work pensions to those declared unemployed was revised upward against the budgeted projection to 2,284.91 million roubles (+255.42 million roubles due to an 8% off-schedule indexation of pension insurance portion from August 1, 2008; expenditures to cover funeral payments to such citizens were revised upward to 267,600 roubles (+67,200 roubles). These expenditures will be financed within the limits of the federal budget funds allocated to the budgets of the Russian Federation constituent entities as subventions.
5. Expenditures for payments to the specialists working in the Russian Federation nuclear weapons complex were revised upward against the budgeted projection and increased by 200.34 million roubles (to reflect the increase in the number of eligible recipients) along with the increase of the federal funds' amount transferred to the Fund for the above purposes.
6. Subject to the adjusted 2008-2010 macro-economic wage fund forecast, insurance premium collections projected for 2008-2010 increased, including the 2008 figures: for work pension insurance rate payments - by 72.04 billion roubles, for work pension funded portion payments - by 4.01 billion roubles.
7. Expenditures for work pension insurance rate payments were adjusted by 48.09 billion roubles to reflect an 8% off-schedule pension insurance rate indexation from August 1, 2008, carried out in accordance with applicable laws and based on a predicted price rise index for the first six months of 2008.
8. In execution of the Federal Law On supplementary social security for the civil aircraft flying crews, extra-fare insurance premiums for corporate employers using the labour of civil aircraft flying crews were increased by 166.9 million roubles to reflect the adjusted labour compensation fund for this category of employees.
9. The Fund's budget key figures relating to the formation of funds to finance the work pension funded portion payments were adjusted to reflect the re-evaluation of parameters against the adjusted macro-economic forecast for 2008-2010 and with due regard for the budget implementation results for 2007 and for January-April 2008.
10. The amount of federal budget funds to cover the Pension Fund's 2008 budget deficit was adjusted by 26 billion roubles (from 155.5 to 129.5 billion roubles), to reflect reallocation of such funds to financially support additional expenditures for pension welfare payments funded out of the federal budget, and with due regard to additional receipt of own funds of the Pension Fund budget.
11. Changes in the Fund's budgeted expenditures for 2009 and 2010 will be taken into account in drafting the federal law on the budget of the Russian Pension Fund for 2009 and for the 2010-2011 planned period.
The draft federal law On Amendments to the Federal Law On the Budget of the Social Insurance Fund of the Russian Federation for 2008 and for the Planned Period of 2009 and 2010 provides for an increase in certain social payments, and has been elaborated in accordance with the provisions of the draft federal law Amending Certain Legislative Acts of the Russian Federation in Order to Increase Separate Social Payments and the Value of the Social Service Package, which provide for an indexation in the second half of 2008 of public welfare payments to citizens with children to 10.5% December-December CPI level (an increase of 1.9%) based on the key figures of the Russian Federation socio-economic development forecast until 2010.
The draft law contemplates an adjustment of the Fund's 2008 budget in terms of revenues and expenditures.
The draft law forecasts an increase in the Fund's 2008 fiscal revenues by 10,594.2 million roubles, including a 3,314.3 million roubles increase for compulsory medical insurance, a 6,957.9 million roubles increase for compulsory social insurance against occupational accidents and diseases, and a 322.1 million roubles increase out of the federal funds transferred to the Fund's budget for state functions' performance.
Projected wage fund growth in 2008 up to 10,166 billion roubles (103.2% of the amount specified in calculations of the budget approved by the Federal Law dated February 28, 2008 No. 17-FZ) defines an increase in the single social tax receipts credited to the Fund up to 232,171.6 million roubles (an increase of 3,078.1 million roubles).
Revenues generated from insurance premiums under compulsory social insurance against occupational accidents and diseases were increased up to 55,254 million roubles (an increase by 6,545.2 million roubles). In accordance with the forecast, Russia's Federal Taxation Service increased in general the share of the cumulative tax receipts in the Fund's budget by 635.8 million roubles, while tax receipts under the simplified taxation system increase by 840.4 million roubles, and tax receipts from taxation of imputed income generated from certain types of activities will decrease by 225.7 million roubles. Single agricultural tax receipts shall increase by 21.2 million roubles.
Based on the actual implementation of the Fund's 2007 budget in terms of revenues generated from tax arrears, fines and penalties on insurance premiums in the amount of 134.2 million roubles, and the reduction dynamics of such receipts for all years, the revenues projected in this area are set at 100 million roubles.
Given the growing deficit of funds for compulsory social insurance and in absence of any approved regulation on stand-by funds for compulsory social insurance against occupational accidents and diseases, the revenues generated from placement of temporary (surplus) funds decrease by 117 million roubles.
Based on current data for the Fund's budget implementation in the first quarter of 2008, a provision is made for an increase of 180 million roubles in money sanctions (fines) for violating the Russian Federation laws on state non-budget funds and specific types of compulsory social insurance (as to the Social Insurance Fund of the Russian Federation) and a 300 million roubles increase in capitalised payment receipts.
The amount of federal funds transferred to the Fund's budget for the payment of 0-18 months child care benefits to citizens not subject to compulsory social insurance was increased by 322.1 million roubles to allow for a benefit indexation planned for the second half of 2008 up to 10.5% December-December CPI level (an increase of 1.9%) in accordance with macroeconomic indicators (of the Russian Federation socio-economic development). Overall amount of federal funds to be transferred to the Fund's budget in 2008 will amount to 34,351.1 million roubles.
The draft law also provides for an increase in the Fund's 2008 expenditures by 10,490.7 million roubles.
Overall expenditures amounted to 375,548.4 million roubles, including increased compulsory social insurance and compulsory social insurance against occupational accidents and diseases expenses, which amounted to 264,771.9 million roubles and 49,852.6 million roubles, respectively.
Operating deficit of the Fund in terms of compulsory social insurance is forecast at 22,516.7 million roubles, which is 5,873.7 million roubles higher than budgeted.
In determining the expenses for 2008, it was provided that the following allowanced would be indexed from July 1, 2008 to 10.5% December-December CPI level (an increase of 1.9%): child birth grants, 0-18 months child care benefit (monthly) to citizens not subjected to compulsory social insurance, minimum and maximum 0-18 months child care benefits to citizens subject to compulsory social insurance, early pregnancy registration grants.
Temporary disability benefit payments are forecast based on 2007 budget implementation and new macroeconomic indicators for the Labour Compensation Fund growth at 134,059.6 million roubles, which is 5,251.9 million roubles higher than budgeted.
Temporary disability benefit payments under compulsory social insurance against occupational accidents and diseases were estimated at 2,395.9 million roubles, which is 149.9 million roubles higher than budgeted.
Maternity allowance payments were also determined based on implementation of the Fund's 2007 budget and new macroeconomic indicators for the Labour Compensation Fund growth and forecast rise in births, and constituted 39,697 million roubles, which is 3,631.4 million roubles higher than budgeted.
Under the draft law the amount for calculation of a one-off insurance compensation is set at 50,900 roubles for the first half of 2008 and at 51,800 roubles for the second half of 2008. Increase of this amount in the second half of the year is due to additional 1.9% indexation to 1.105 December-December CPI level.
The draft law also sets the maximum monthly insurance compensation at 39,100 roubles for the first half of 2008 and at 39,840 roubles for the second half of 2008.
Under the draft law expenses for child health improvement are increased up to 16,545.2 million roubles (an extra provision of 299.5 million roubles) to maintain, after allowing for forecast inflation, child health improvement levels as planned (approx. 5 million children).
The draft law adjusts the Fund's fiscal revenues for the planned period of 2009 and 2010 providing for an increase in revenues generated from single social tax receipts and insurance premiums under compulsory social insurance against occupational accidents and diseases due to adjusted macroeconomic indicators for the wage fund:
Amendments contemplated by the draft federal law On Amendments to the Federal Law On the Budget of the Federal Compulsory Medical Insurance Fund for 2008 and for the Planned Period of 2009 and 2010, are made to reflect the adjustment of inter-budgetary transfers made from the federal budget, subject to fund balance as of January 1, 2008, resulting from underutilisation in 2007 of budget allocations under relevant expenditure items.
Revenues of the Russia's Compulsory Medical Insurance Fund will increase due to additional tax receipts as follows::
Given the available fund balances as of January 1, 2008, due to underutilisation in 2007 of budget allocations, and subject to the expected implementation of the (Compulsory Medical Insurance) Fund's 2008 budget, it is proposed to reduce in 2008 the amount of inter-budgetary transfers from the federal budget by 1,328,795,900 roubles.
It is also proposed to increase the inter-budgetary transfer from the federal budget to cover 2008 orphan health examination expenses by 23,131,000 roubles due to the higher number of children to be examined in 2008-2010; in particular, health examinations are envisaged for orphans and children in a difficult situation in care of inpatient healthcare, educational and social security facilities.
With due regard to the above changes and adjustments, the Fund's overall revenues and expenses in 2008 will amount to 130,595,429,700 roubles and 133,022,015,700 roubles, respectively.
Fund balance on January 1, 2008, in the amount of 1,160,934,800 roubles will be used as additional means to cover the increased fiscal deficit of the Compulsory Medical Insurance Fund's budget formed as a result of reduced inter-budgetary transfer from the federal budget.
It is proposed to use the extra revenues anticipated in 2008 in the amount of 2,785,400,000 roubles to increase the funds under Article 6 (Part 6) of the Federal Law, reserved in the Compulsory Medical Insurance Fund's budget to financially support Compulsory Medical Insurance territorial programmes run under the CMI framework programme. Therefore, additional allocations will be made to the budgets of the territorial CMI (compulsory medical insurance) funds in the order provided for the use in 2008 of specific reserve stocks of the Compulsory Medical Insurance Fund.
Overall revenues of the Fund for the planned period of 2009 and 2010 are forecast at 138,245,585,200 roubles and 129,017,035,000 roubles, respectively.
The Fund's expenditures in 2009-2010 were not increased since additional tax receipts are anticipated in this period; so, the Fund's budget surplus in 2009 is forecast at 18,257,927,000 roubles and at 24,534,366,000 roubles for 2010.
3. On the establishment of the Government Commission on Control over Foreign Investments in the Russian Federation.
The establishment of the Government Commission (hereinafter referred to as the Commission) and designation of an authorised body for control over foreign investments in the Russian Federation, is provided for by Federal Law No. 57-FZ dated April 29, 2008 On Foreign Investments in Business Entities Strategically Important for Ensuring National Security and Defence (hereinafter referred to as the Federal Law) and Federal Law No. 58-FZ On Amending Certain Russian Federation Legislative Acts and Declaring Inoperative Certain Provisions of Russian Federation Legislative Acts due to the Enactment of the Federal Law On Foreign Investments In Business Entities Strategically Important for Ensuring National Security and Defence, for making decisions in reviewing foreign investor applications and approving agreements.
Under the Federal Law, the Prime Minister of the Russian Federation is the Commission's head.
The Commission's key functions include:
The Federal Law lists 42 types of activities strategically important to ensure national security and defence, including:
It is proposed to instruct the Ministry of Industry and Trade of the Russian Federation together with the federal executive bodies concerned to submit a draft resolution on the approval of the provision on the Commission and its composition, as well as on the designation of a federal executive body authorised to exercise control over foreign investments in the Russian Federation, to the Government of the Russian Federation in an established order.
May 30,
2008
Moscow
* The content of press releases issued by the Press Service and Information Department is a compilation of materials provided by the federal executive authorities for discussion at a meeting of the Russian Government.
