Putin: Russia needs growth budget in 2014-2016, despite economic challenges

File Photo of Cash, Coins, Line Graph

(Interfax – NOVO-OGARYOVO, September 11, 2013) Russia needs to have a growth budget in 2014-2016 despite the difficulties in the global economy, President Vladimir Putin said at a meeting on drafting the budget for the next three years.

“We need to soberly assess the situation and bring revenue and spending into line with the economic growth forecast that is shaping up at present. We cannot do otherwise,” Putin said.

At the same time, the government “must proceed from the idea that the budget must be a growth budget.”

“The key element is that we must be cautious, proceed from the current realities, but all the same not forget the long-term economic development goals,” he said.

Putin also asked for a report on how the draft budget accords with the budget address, particularly the provisions for financing the decrees issued in May last year following his reelection.

A whole series of meetings have been held this year on implementing major infrastructure projects, he said, and they convinced the government of the need to develop the nation’s infrastructure.

“We have a lot of problems in this respect, certain reserves have been accumulated, we have the opportunity to develop the Trans-Siberian railway, BAM (Baikal Amur Mainline),” Putin said.

Putin also urged the government “to pay the closest possible attention” to the formation of the regional budgets.

“The subfederal entities are currently facing an exacting situation. They must meet the requirements set out in the May 2012 decrees, while there is a certain reduction in revenue from various taxes,” he said.