RUSSIA: Cabinet Re-Drafts Federal Target Programs


At the yesterday's sitting of the government, Russian Prime Minister Mikhail Fradkov gave in to the State Duma's deputies and widened the investment component of the budget to 640 billion rubles, simultaneously declining certain proposals of its own ministers.

Economic Development Minister German Gref was able to submit the documents related to the federal target and address investment programs only at night before the government’s meeting, having infuriated Fradkov by delay. When opening the yesterday’s sitting of the government, prime minister called the work on the programs “ineffective and slow,” adding “there is no need to work at night.” Actually Gref had got down to compiling the list of the above programs back in June. At first the government decided to allocate 287 billion for the federal target programs, to the obvious discontent of the State Duma. In July, the basic macroeconomic and budget guidelines were extended with as much as 209 million rubles found in addition.

The funding of the federal target programs has piled up from 287 billion rubles to 339.7 billion rubles, address programs will get around 300.8 billion rubles, Deputy Economic Development and Trade Minister Vitaly Saveliev said yesterday.

Economic Development Ministry suggested funding 51 federal target programs in 2006. Only 36 of them have been approved to-date, while 15 more programs are to be refined by November 1, Gref specified Thursday.

Of all new programs, Industry and Energy Minister Viktor Khristenko appeared to particular favor the Efficient Energy Economy program, but was rebuffed by Gref. According to Gref, the program sets forth crude production of 360 million tons in 2005, while the actual volume will reach 470 million tons.

Having tempered justice with mercy, Fradkov backed up German Gref by the end of the sitting, approving his proposal to further elaborate the federal target programs by November 1 and to drop the Efficient Energy Economy program.

Baja