The following issues are scheduled for discussion at the Government Presidium meeting on September 15, 2008:
1. Federal budget results in the first half of 2008
Federal revenues, including the unified social tax of 240.9 billion roubles, amounted to 4.3707 trillion roubles in the reporting period, or 23.25% of the roughly estimated six-month GDP of 18.858 trillion. Federal revenues without the social tax were 4.1298 trillion roubles, 21.9% of the estimated GDP.
Federal cash-based expenditures in the reporting period were 2.9956 trillion roubles (15.9% of the GDP), or 40.4% of the adjusted budget layout.
The federal budget surplus on a cash basis was 1.3751 trillion (7.3% of the GDP).
Consolidated budget revenues and state non-budget funds as of July 1 amounted to 7.5437 trillion roubles (40.0% of the GDP), and expenditures, 5.5155 trillion (29.2% of the GDP).
The total surplus of the country's consolidated budget and state non-budget funds amounted to 2.0281 trillion roubles, including the federal budget surplus of 1.3751 trillion roubles, consolidated budget of Russia's regions, 473.2 billion roubles, state non-budget funds, 164.4 billion, and regional state non-budget funds, 15.4 billion.
Russia's government debt as of July 1, 2008 totalled 2.3624 trillion roubles, or 12.5% of GDP, down 40.4% from January 1.
Aggregate Reserve Fund cash in roubles was 3.0565 trillion and the National Welfare Fund, 770.6 billion roubles, as of the reporting date.
2. Progress of targeted federal programmes and the federal targeted investment programme in the first half of 2008
The key results of the Federal Target Programmes as of July 1 were no longer behind schedule, as the case had been at the end of the first quarter of 2008. A number of programmes in fact posted better results than at the same time last year.
Federal cash-based spending on the 46 federal programmes totalled 206.8 billion roubles as of the reporting date, or 30.3% of the total financing envisaged by the federal budget law for 2008 and the planning period of 2009-2010.
The Finance Ministry reported disbursement of 27.4% of the adjusted budget layout, including the federal budget balance, as of January 1, 2008 (the funds left over due to the incomplete utilisation of 2007 allocations and channelled into financing 2008 expenditures), including state capital investment of 120.4 billion roubles (28.9%), R&D investment, 23.5 billion roubles (40.1%), and other expenses, 62.9 billion roubles (30.3%).
The level of federal programme financing in the first half of 2008 was 4.1 ppt higher than in the same period of 2007, or up 73.4 billion roubles, and nearly 24 ppt above the first quarter of 2008.
At the same time, the levels of financing of specific programmes are very different. Four programmes received no financing in the first half at all, while 15 programmes were financed below 10% of the plan. Only two programmes were financed above 50%.
It follows that federal programme financing, although increased, was still below the planned level in the first six months of 2008.
The Economic Development Ministry said the programmes were not implemented properly because state contracts were not signed on time, and distribution of government financing between specific state customers and specific capital construction projects was delayed. The Ministry also cited shortfalls in the programmes' co-financing by Russia's regions and off-budget sources.
From January to June 2008, state customers were to complete the placement of state orders and sign most state contracts under the programmes in question.
However, according to the state customers, a total of 3,407 long-term contracts were implemented during the reporting period, as well as 9,324 12-month contracts worth 536.35 billion roubles, or 78.6% of the annual budget allocations (including previous years' contracts), up 3.9%, or 156.3 billion roubles, from last year.
As many as 292 agreements were signed with regions of the Russian Federation to provide 68.67 billion roubles in subsidies for capital investment targets (10.1% of the year's plan).
Although the actual contributions from the regional and local budgets and non-budget sources grew to 25.2% from 9.1% in the first quarter, the amounts channelled for these purposes remained insufficient for stable financing of all programmes.
Regional and local governments contributed a total of 93.17 billion roubles to finance federal target programmes in the first half of 2008, or 28.8% of the planned 2008 allocations; another 176.22 billion came from non-budget sources.
3. The Draft Federal Law On Amending Chapter 25.3 of Part 2 of Russia's Tax Code and several other laws, and invalidating the Federal Law On Fees Charged for Licences Issued to Produce and Deal in Ethyl Alcohol and Alcohol-Containing Products.
The law was drafted to implement the decisions of the Government Commission on Administrative Reform aimed at optimising the list of legally significant actions and related state services performed by federal executive bodies, their territorial divisions, as well as federal state agencies and state unitary enterprises reporting to them.
The draft law insert ignore s into the Tax Code's Chapter 25.3, State Dues, all legally significant actions performed by federal executive bodies and their territorial divisions with regard to individuals or legal entities accountable in amount and according to the procedure stipulated by this Chapter of the Code.
Such legally significant actions include:
- Issue of licences, permits, conclusions, approvals, certificates, identifications, diplomas, passports, and other documents and copies of documents;
- State registration of individuals and companies, political parties, mass media sources, acts, rights, limitations (encumbrance) of rights, agreements, facilities, property, products, equipment, and materials;
- Accreditation of organisations;
- Changes to state registers, certificates, identifications and other documents issued.
The draft adds legally significant actions approved by the Government Commission on Administrative Reform and selected from proposals to optimise the list of legally significant actions and related commercial services performed by federal executive bodies, their territorial divisions, as well as federal state agencies and state unitary enterprises reporting to them.
The state fees payable for the legally significant actions introduced by the draft are set according to the same pricing scheme used for other state dues determined by Chapter 25.3 of the Code, and do not depend on the services' effective costs.
The draft exempts federal, regional and municipal state government bodies from paying the fees applicable to other government bodies for the services stipulated by Chapter 25.3 of the Code, including cases when they appear in court as plaintiffs or defendants.
The draft also amends several Russian laws in order to reconcile them with Russian tax laws.
The draft stipulates that the list and forms of documents required to perform legally significant actions included in subparagraph 6 of Clause 1 of Article 333.18 of the Code, and the procedure for presenting these documents, shall be regulated by federal laws and/or Government acts. This provision takes effect one year from its official release.
4. The Draft Federal Law On Amending Articles 333.33 and 333.35 of Part 2 of Russia's Tax Code
The draft law stipulates a reduction in the state duty levied on individuals and legal entities for state registration of rights, encumbrance of plots that are part of crop lands, and transactions sealing encumbrance on such lands, from 500 roubles (for individuals) and 7,500 roubles (for legal entities) to 100 roubles, and 50 roubles in the case of registering a share in common ownership of plots of crop land.
The draft law also cancels state duties on registration of rights or encumbrance on land plots used for reindeer husbandry, for both individuals and legal entities.
The draft envisages the federal law taking effect on January 1, 2009.
5. The Draft Federal Law On Amending Administrative Offenses Code
This draft has been developed as part of the Government's plan for lawmaking activity and introduces responsibility for using small vessels without the documents currently required by legal acts regulating the use of small vessels, and for handing over the control of the vessel to persons having no license.
This draft regulates the legal relations between the vessel-user and an official such as a small vessel inspector, including conflicts arising from using the vessel without required documents.
The documents required for using a small vessel include a license and the vessel's certificate (registration document).
According to the Regulations on the State Small Vessel Inspectorate, such documents are issued by the State Small Vessel Inspectorate, a unit of the Ministry of Civil Defence, Emergencies, and Disaster Relief. Inspectors are authorised to check licenses and suspend vessel-users who have no license (subparagraphs 3 and 4 of Clause 8 of said Regulations).
Furthermore, every small vessel should have a copy of its vessel's certificate on board, legalised in accordance with the established procedure, as required by Article 31 of Russia's Merchant Shipping Code and Rules for registration of small vessels covered by the jurisdiction of the State Small Vessel Inspectorate.
This draft law will eliminate a lacuna in the legal regulation of small vessels operation, by introducing administrative responsibility for using a small vessel without a license, a copy of the vessel's certificate legalised in accordance with the established procedure, as well as documents confirming the person's ownership or right to use the vessel in the owner's absence, and for handing over the control of the vessel to a person without license.
The amendments introduced by this draft generally comply with the Code's concept and do not break the systemic interrelation of the Code's clauses.
The new law will authorise state inspectors to take legal action against individuals using small vessels without the required documents, including caution, fine, or detention of the vessel until the reasons for detention are removed.
The amended Code will improve safety on the water and increase the responsibility of vessel owners and won't require additional federal expenditure.
6. The Draft Federal Law On Amending Article 11 of the Federal Law On State Borders
This draft law was developed to fulfil the directives of the President and Government. It is aimed at shortening the time of border and customs procedures for passenger trains on international routes. The draft law will authorise the Russian Government to make decisions on the border and customs, and other kinds of control procedures on international railway links outside border checkpoints.
These procedures will be performed on a moving train approaching the state border and back after crossing into Russia.
The new law will strengthen Russia's international contacts in tourism, business, research, and other areas.
September 15, 2008
Moscow
* Press releases by the Department of Press Service and Information contain the materials submitted by the federal executive bodies for discussion by the Presidium of the Government of the Russian Federation.
