2005 BUDGET SHOULD NOT REST ON OPTIMISTIC FORECASTS

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MOSCOW, March 25, 2004. (RIA Novosti) - Vladislav Reznik, chief of the State Duma committee on credit organisations and financial markets and deputy leader of the United Russia parliamentary faction, believes a 2005 draft budget must rest on cautious forecasts.

"While drafting the national budget, we should not rely on optimistic forecasts, but proceed from possible financial risks," Mr. Reznik said in a RIA Novosti interview on Thursday.

Although oil prices are high at the moment, and they will not hopefully go down, we must be prepared for a worse development, according to the MP.

Moreover, he deemed it necessary that the stabilisation fund should be replenished from extra revenues.

Mr. Reznik was positive a 2005 budget would be a balanced budget with a surplus.

Mr. Reznik said United Russia would co-operate with the government in drafting the budget and expressed readiness to hold discussions with the government on the matter.

When opening a government meeting on Thursday, Prime Minister Mikhail Fradkov said the government was embarking on drafting the 2005 budget. Mr. Fradkov tasked the government with drafting a balanced budget.

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