According to the document that the Finance Ministry submitted to the government late last week, the 2005 budget surplus has been raised from 1 to 1.5% of GDP.
In real figures, the budget surplus is expected to account for 278,112 million rubles as compared to the earlier projected 187,130 million rubles ($1 equals 29.22 rubles, according to the Central Bank).
The federal budget revenues have been increased from the earlier planned 17.2 % (or 3,103,266 million rubles) to 17.8 % of GDP (3,326,080 million rubles). Expenses have been raised from 16.1% (or 2,916,253 million rubles) to 16.3% of GDP (or 3,047,970 million rubles).
GDP is expected to account for 18,720 billion rubles instead of the earlier projected 18,080 billion rubles next year.
The draft budget has been accomplished with due consideration for the specified macroeconomic forecast of the country's development next year, worked out by the Ministry of Economic Development and Trade.
According to earlier reports, the Ministry of Economic Development and Trade raised the average 2005 oil price forecast from $26 to $28 per barrel, and GDP growth from 5.9% to 6.3%.
As of January 1, 2006, Russia's state foreign debt should not exceed $109,400 million (or 79,700 million euros). This is the limit laid down in the 2005 draft budget.
The top limit of other countries' debt to Russia (except CIS nations) has been set at $82.4 billion, and of the CIS debt - at $3.2 billion.
As of January 1, 2006, the state domestic debt has been set at 995,800 million rubles, according to the 2005 draft budget.
The budget will allocate 1 billion rubles for settling state debt trade obligations next year, according to the draft budget.
On January 1, 2005, the stabilisation fund will account for 574,400 million rubles, according to Finance Ministry. Oil prices exceeding $20 per barrel will yield 387,800 million rubles to the budget next year.
According to the law on stabilisation fund, its reserves can be used when it exceeds the basic level of 500 billion rubles.
Therefore, 74,700 million rubles out of the 387,800 milllion rubles of additional revenues will be spent to cover the deficit of the Pension Fund in the wake of the social tax cut from 35.6% to 26%. Another 92,200 million rubles of the stabilisation fund will be channelled for the foreign debt settlement.
Considering these expenditures, the stabilisation fund should account for 795,300 million rubles on January 1, 2006.
The previous draft budget for 2005, which the June 17 government session proceeded from, the stabilisation fund was expected to stand at 512,120 million rubles on January 1, 2006.
On August 26, the 2005 draft budget will be submitted to the State Duma (lower house).
