Main results and trends of budget policy (стр. 2 )

Table 2.2.

Federal Budget Dynamics by Functional Classification

	2007 (law)	2008 (projected)	2009 (projected)	2010 (projected)
*****bles	*****bles	% of total volume	Growth rate	*****bles	*****bles
Expenditures, total	5,463.5	6,570.3	100.0	20%	7,451.2	8,089.9
Expenditures, total, without provisionally approved	5,463.5	6,570.3	100.0	20%	7,264.9	7,685.4
Nationwide issues	808.2	907.1	13.8	12%	977.0	1,042.5
Government debt servicing	156.8	187.9	2.9	20%	212.6	247.1
National defence	822.0	959.6	14.6	17%	1,061.5	1,191.0
National security and law enforcement	662.9	771.2	11.7	16%	932.1	999.6
National economy	497.2	718.2	10.9	44%	802.0	544.2
Housing and utilities infrastructure	53.0	56.9	0.9	7%	79.2	71.0
Environmental protection	8.1	9.3	0.1	15%	10.2	11.0
Education	277.9	308.9	4.7	11%	315.5	341.1
Culture, film-making and mass media	67.8	82.8	1.3	22%	70.3	67.5
Public health, physical fitness and sports	206.4	218.3	3.3	6%	234.2	274.6
Social policy	215.6	273.0	4.3	32%	362.4	427.5
Inter-budgetary transfers	1,844.3	2,272.4	34.3	22%	2,421.0	2,715.6
To budgets of other levels	754.0	919.3	13.9	22%	905.1	874.8
To government off-budget funds	1,060.4	1,353.2	20.4	26%	1,515.9	1,840.8
Provisionally approved expenditures	-	-	-	-	186.3	404.5

In 2007 non-interest spending, expressed in real terms, grew by 22.9% in relation to the preceding year; in 2008, 2009 and 2009 this growth will be capped at 8.7%, 6.2% and 1.9%. Total non-interest expenditures from the federal budget for will amount to 18-18% GDP; in 2010 it will drop to 16.6% GDP.

Thus, the federal budget for 2008, and through 2010, was drafted in accordance with the presidential address, in the sense that the actual growth of government spending is coordinated with the rate of economic growth.

Distribution of fiscal assignments by function (table 2.2) and subject (table 2.3) ensures that the government’s existing spending commitments, as well as those newly assumed with regard to national priorities, are carried out.

The biggest expenditures for the federal budget will be: transfers to governmental extrabudgetary funds aimed at social welfare and retirement benefits (20.4%); transfers to regional budgets (14%), national defense (14.6%) and national security (11.7%). Expenditures on the national economy will amount to 10.9%, the greater part of which will go toward infrastructure development and support for strategically important industries.

Table 2.3.

Federal Budget Expenditure Dynamics by Main Budget-Planning Entities[1]

	2007 (budget revenues and expenditures)	2008 (projected)	2009 (projected)	2010 (projected)
*****bles	*****bles	% of total volume	*****bles	*****bles
Ministry of Defence of the Russian Federation[2]	482.7	568.0	11.5	623.2	672.8
Ministry of Interrior of the Russian Federation2	255.9	283.1	6.0	323.5	349.6
Ministry of Finance of the Russian Federation (without government debt servicing and inter-budgetary transfers)	229.9	302.1	5.2	341.5	399.0
Ministry of Education and Science of the Russian Federation	286.9	316.1	5.5	319.1	331.5
Ministry of Transport of the Russian Federation	223.7	327.2	5.7	340.2	83.8
Ministry of Public Health and Social Development of the Russian Federation	247.0	235.9	3.7	248.0	237.8
Ministry of Economic Development and Trade of the Russian Federation	196.4	225.6	3.9	227.3	183.5
Ministry of Agriculture of the Russian Federation	89.1	117.3	2.0	112.7	123.9
Ministry of Industry and Energy of the Russian Federation	117.8	134.8	2.3	175.8	109.2
Ministry of Culture and Mass Communications of the Russian Federation	74.2	88.6	1.5	76.4	73.6
Ministry of Natural Resources of the Russian Federation	53.1	66.7	1.2	68.4	70.5
Ministry of Civil Defence, Emergencies and Disaster Relief of the Russian Federation	45.7	78.3	1.4	54.8	56.1
Ministry of Foreign Affairs of the Russian Federation	19.9	21.1	0.4	21.1	23.0
Ministry of Information Technologies and Communications of the Russian Federation	27.7	23.1	0.4	26.3	28.8

General factors in forming budget expenditures include pay raises to workers in the budget sphere, cash pay raises to military servicemen and equivalent persons, increasing appropriations for the implementation of priority national projects and programs aimed at removing infrastructure constraints, and the development of innovation-based sectors of science and industry.