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Russian Duma Passes Amendments to 2001 Budget
The Russian State Duma Thursday passed amendments to the 2001 budget by three readings, while turning down the bill on allowing the privatization of large enterprises in absence of a special law.
The amendments, serving as a compromise version of the original draft raised by the government, were proposed by the Duma's budget committee on Monday.
To the disappointment of the government, the Duma voted by a large majority of 295 to ban the privatization of large enterprises without a special law, rejecting amendment to the Article 100 of this year's budget. The government is seeking to lift the ban for channeling more money to the sector of debt repayment.
Under the approved amendments, the first 41 billion rubles (1.4 billion U.S. dollars) in additional revenue will be used to repay interests of foreign debts in line with the payment schedule.
Extra revenues in excess of the 41 billion rubles is suggested to be split into two parts, 50 percent for foreign debts servicing and another 50 percent for social expenditures, first the increase of public sector wages and allowance for military personnel.
Furthermore, the additional revenues in excess of the expected 165.2 billion rubles (5.8 billion dollars) will also be spent on debt reduction.
Finance Minister Alexei Kudrin told the press after the Duma's Thursday session that the government can start full-scale debt repayments to the Paris Club of creditors this month.
"We can base ourselves on the political decision of the Duma," and "there is a technical opportunity for the payments," he added.
The Russian government submitted its draft on amendments to Budget 2001 to Duma on February 14, under which, all additional revenues will be used to repay foreign debts, with the exception of 27 billion rubles (944 million dollars) for social expenditures.
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