Russian Prime Minister Mikhail Fradkov said this on Monday opening the government session considering the 2005 draft budget.
"The budget should also encourage the army development, help form transport infrastructure for effective economic development, and boost innovation development," said Mr. Fradkov.
He believes that non-financed mandates should be abolished in 2005. "Spending should be provided with revenue sources for the first time," the prime minister explained.
Mr. Fradkov noted that the budget was worked out simultaneously with the reform of the authority system, federative relations, privileges, the budget process and also the judicial, military and tax reform.
In 2005, the stabilisation fund should be involved in the economic processes inside the country, the prime minister believes.
"In 2005, the status of the stabilisation fund will be changed. It will be turned from the accumulating instrument into the instrument of budget and economic policy," Mr. Fradkov said.
According to the Finance Ministry, stabilisation fund will account for 574,400 million rubles on January 1, 2005. This figure is laid down in the 2005 draft budget to be discussed by the Russian government today.
According to the law on the stabilisation fund, the fund's money can be used when its reserves exceed the basic level of 500 billion rubles.
