Transcript of the beginning of the meeting:

Dmitry Medvedev: We have an opportunity to discuss planned amendments to the law on the federal budget for 2012 and for the 2013-2014 planning period. It’s really great that federal budget revenues, treasury income, are constantly outstripping budget expenditures. This allows us to use the extra funding to address priority issues, primarily of course, social issues. I would like to remind you that additional budget revenues total 322 billion roubles, the bulk of which this year, around 210 billion roubles, came from economic sectors other than the oil and gas industry. The additional budget revenues were due in no small part to the privatisation of Sberbank shares (150 billion roubles) and dividends from Rosneftegaz operations (about 50 billion roubles). 

Naturally, these extra revenues will be spent on priority areas. So what are they? The money will be used to develop the road and energy infrastructure in the Far East and on the development of the Far East as a whole; and to develop the transport infrastructure of the Moscow Region and build bridges and roads in various Russian regions. There are plans to channel an impressive 20 billion roubles into the
State Corporation Housing and Utilities Reform Fund, so that it can fulfill its statutory objectives. About 10 billion roubles will be spent on the construction and purchase of housing for military personnel, primarily near Moscow where the main construction projects are being implemented. Part of the funding will be spent on regional subsidies, which should ensure a well-balanced budget system. In addition, we face urgent needs that arise each year. This year, the country’s agriculture sector experienced a drought and other problems, so we need to finance projects to overcome the consequences of the drought, like we promised farmers. We must also help the Far Eastern Federal University with its laboratory projects. There are some other problems, including the Saratov Youth Theatre, which was almost completely destroyed by fire. We must help them too. And we ought to implement some other ideas which we will talk about now.

The most important thing is for us to focus on fulfilling our social obligations. The budget remains well-balanced and realistic. Nevertheless, what we are going to discuss now will enable the budget for 2012 and for the coming period to be considered as a development budget, in which we will try and implement our long-term plans and projects, try to support innovation and business activity, and create new production facilities and jobs. In the long run, this amounts to a new quality of life.

And now let’s discuss more mundane matters. Mr Siluanov will discuss in greater detail what can be done. Please go ahead.

<...>