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Accounts Chamber points to $23 billion deficit in 2011 budget

Published: 18 October, 2010, 21:40
Edited: 19 October, 2010, 22:12

(14.6Mb) embed video

TAGS: Oil, Russia, Crisis, Budget, Prime Time Russia, Economy, Finance


Russian officials have found a giant hole in next year's state budget –$23 billion from some mysterious sources.

The Accounts Chamber claims that the Ministry of Finance has put in the federal budget of 2011 as much as eight percent of funds without any appropriate explanation where this money is coming from.

According to the Budget Code, alongside with the budget draft, the government has to submit to the State Duma precise calculations concerning every item of the budget. This time, however, all the Duma got from the government were tax and customs calculations – unable to fully demonstrate the sources of budget incomes.

In addition, the calculations the Ministry cited, the Accounts Chamber says, require further calculations – which makes the whole case even more complicated.

There were also problems concerning the budget draft for 2012, with 6.5 percent from “mysterious incomes” ($20 billion), as well as for 2013, with 6.2 percent ($21.2 billion).

Meanwhile, top Russian politicians say that the country has been emerging from the crisis in even better shape than previously forecast. They say that government spending no longer outweighs their earnings.

“We hope the real deficit in the state budget in 2010 will be considerably lower than the expected 5.3 percent,” said Russian Prime Minister Vladimir Putin. “And next year, the deficit level is expected to be around three percent.”

The State Duma will decide the fate of the budget draft for 2011 on November 24.

The new budget is forecast to be focused on the social sphere, allocating considerable funds for education, healthcare, keeping wages at pre-crisis levels, and the like. The authorities will also aim to diversify the economy and to step back from the oil and gas sectors. Political analysts say that such a policy is motivated by the forthcoming elections of 2011 and 2012.

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