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Press release, 04.10.2000
The Yabloko faction discovers additional 88 bln roubles in non-oil revenues in the budget

The Yabloko faction is conducting negotiations with the government to support the draft budget for 2001.

The faction has proposed a number of conditions in the “Basic Proposals of the Yabloko Association” for the Draft Federal Budget for 2001”, forwarded to the Government of the RF on October 2.

1. To specify the revenues totalling about 88 bln roubles from different

non-inflationary sources that are basically independent of changes to the oil prices. The developers of the Proposals proved that the following funds “have not been considered” by the government:

 

  • 29 bln roubles from the profits tax of enterprises and organisations;
  • 24 bln roubles from VAT on imports to the RF;
  • 19 bln roubles from export duties;
  • 7 bln roubles from customs duties;
  • 3.4 bln roubles from import duties;
  • 2.27 bln roubles from dividends on state-owned shares;
  • 2.4 bln roubles from the rent of property owned by the state and other revenues from property owned by the state, or its activity;
  • 0.4 bln roubles from the state tax.

 

2. The faction proposes distribution of the additional funds in accordance with the programme priorities of Yabloko. In particular:

 

  • over 50% of the disclosed funds should be allotted to state defence and military reform, which will allow, in particular, for the initial transition of the army to a contract basis and abolition of military conscription, a reduction in the armed forces of 400.000 people, a doubling of officer pay; at the same time the pay of grass-root contractors will amount to 2.500 roubles, housing will be provided for the military transferred to the reserve, they will receive professional retraining and be provided with jobs;
  • increase financing of education by 4.8 bln roubles (including an upgrade of the material base and an enhancement of the professionalism of staff);
  • increase financing of judicial reforms by 1.3 bln roubles;

3. Yabloko supports a reduction in the political influence of governors, but at the same will try to ensure an expansion in their economic functions. Yabloko insists that thedistribution of the revenues between the federal and the regional budgets should comply with the Budget Code of the RF and maintain the ratio 50:50. The developers of the Proposals offer such a scheme for redistribution of tax and other revenues, whereby the revenue part of the budgets of federation subjects would be increased by 7.4 bln

roubles and that of local budgets by 7.7 bln roubles.

 

4. Yabloko also thinks that a share of federal budget revenues should be

allotted to a repayment of Russia’s foreign debts. Consequently, following implementation of Yabloko’s proposals, a budget surplus amounting to 17,6466 bln roubles should be established and the revenue component of the budget should be increased to 1266,4452 bln roubles, while expenditure should amount to 1248,7986 bln roubles.