Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon colleagues,

You know, last week the Federation Council and the State Duma had their last spring session meetings. They completed the revision of the major laws on the pension system reform. This is what I would like to start today's meeting with.

We are embarking on the modernisation of the pension system, a transition from single social tax to insurance premium payments. I would like to note that upgrading the pension system and raising pensions are major budgetary policy priorities since there have been so many distortions in the pension system.

We will draw the required funds from our reserve funds. To implement these plans during the financial crisis we will have to settle for either freezing or postponing a number of other important scheduled measures.

It is a must for us to fulfill our moral obligations to the senior generation, as well as to create a new efficient and sustainable pension system, which should become an important stabilising factor for this country's evolving financial system and economy.

In 2010, pensions must grow 45.9%, with the average old-age retirement pension exceeding 8,000 roubles. The criteria for calculating the amount will become fairer and take into account an individual's actual labour contribution.

Major changes will also touch companies, which will need to pay insurance premiums by the new rules.

It is clear that no failures should be tolerated in such a critical and sensitive area as pension coverage.

I know that the Ministry of Healthcare and Social Development is preparing to implement these laws without waiting for them to take effect, which I believe to be appropriate. It is necessary to make clear to people the essence of the pension system changes, and help companies and other organisations switch to the new procedure of paying insurance premiums.

I would like the Ministry of Healthcare and Social Development and the Pension Fund to consider it their priority task and regularly report to the Government on the progress.

Today's meeting will continue putting together the federal budget for 2010 and the 2011-2012 planning period, including the summation of intermediate results.

It is necessary to calculate whether the budget is balanced, if it is adhering to outlined priorities for social support and for development of the hi-tech industries as well as to approve sources for covering budget deficit.

In addition, we will consider proposals for financing federal targeted programmes.

So, let's get down to work.