RUSSIAN AGRICULTURE MINISTER DOES NOT SUPPORT DRAFT BUDGET-2005

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MOSCOW, August 23 (RIA Novosti) - Russian agriculture minister Alexei Gordeyev does not support the drat budget-2005.

"I cannot support the draft budget neither on the whole nor in details. I do not agree with it ideologically," he said at the government's session where the draft budget was discussed.

According to Mr. Gordeyev, the growth of expenditures on the whole being 14% compared to the budget-2004, spending on agriculture and fishing industry have been reduced by 10%.

He noted it was expected to earmark 0.9% of GDP next year for these purposes whereas this year it was 1% of GDP.

The minister pointed out that the stabilization fund, which is planned to be formed next year, is equal to the 20-year volume of support for agriculture.

He pointed out that such a support to agricultural industry complex did not exist practically in any country. Mr. Gordeyev said that the correlation of support for agriculture at the federal and regional level is approximately 90% to 10% in most industrialized states.

According to him, this ratio in Russia is the following: 80%

- the regions and 20% - the Russian Federation.

"I do not see reserves in the regions for agricultural support," the minister pointed out.

He believes that the creation of the competitive agriculture is the issue for the federal center to decide. And the improvement of quality of life in the rural areas - the constitutional right of citizens, the problem of the reproduction of natural resources - is also the task of the federal level.

"None of these strategic aims is being realized," Mr. Gordeyev stressed.

He also pointed out that over the past four years a consistent growth was observed in the agro-industrial sector, the industry reached, on the whole, the break-even level, but "is in the stage of reanimation".

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