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Vremya Novostei, July 4, 2002

Yabloko’s Budget Will Ripe by Autumn

By Viktor Khamrayev

By autumn the Yabloko faction of the State Duma will prepare its own variant of the state budget for 2003 as an alternative to the government’s draft budget. Grigory Yavlinsky’s colleagues have still not decided what their budget will focus on in 2003. Priorities here may be education, military reform or demographic problems. In the end, the choice of priorities is not a financial task, it is only “a problem of the political will of the authorities,” explained deputy of the Duma Igor Artemyev who heads Yabloko’s group for the development of the budget, to Vremya Novostei. For example, when the authorities set last year the task of conducting army reform as soon as possible, according to Artemyev, an additional 1% of the revenue part of the budget for 2002 had to be spent on defence.

But foreign debt remains the main priority for the government this year, as it was last year. A financial reserve was created last year inside the budget. According to Artemyev, such a priority does not require the government to make “any structural decisions”. For example, the Cabinet is dissatisfied with the fact that a considerable proportion of wages are still not declared. To legalise the new incomes the government introduced two years ago a flat rate of income tax and has not proposed anything else since then. A year ago Yabloko proposed abruptly cutting (halving) the rate of the single social tax. In addition the party insisted that employers should only pay half of today’s social tax. Workers should pay the other half from their wages. Igor Artemyev thinks that with the help of such measures a considerable part of undeclared earnings would be legalized.

This year Yabloko will also propose the same scheme for abruptly reducing the social tax rate as an alternative to the government’s propositions. The faction also plans to submit to the State Duma a draft law on providing an amnesty for capital and a package of laws on small business.

See also:
Budget 2003

Vremya Novostei, July 4, 2002

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