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Russian presidential aide disagrees with finance minister over tax rise

© RIA Novosti . Vladimir Fedorenko / Go to the mediabankRussian presidential aide Arkady Dvorkovich
Russian presidential aide Arkady Dvorkovich - Sputnik International
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Russian presidential aide Arkady Dvorkovich has criticized Finance Minister Alexei Kudrin over his plans for ways to tackle the budget deficit.

Russian presidential aide Arkady Dvorkovich has criticized Finance Minister Alexei Kudrin over his plans for ways to tackle the budget deficit.

Kudrin told a tax conference that increasing taxes was not a temporary measure, but a move necessary to decrease the budget deficit. He also called for the scrapping of tax benefits and the creation of "a neutral tax system" with "equal conditions" for all tax payers.

"Kudrin believes the budget deficit should be reduced by means of a tax rise. I do not agree. It is expenses that we should focus on," Dvorkovich said in his Twitter blog.

Russia's 2010 budget deficit will amount to 4.6 percent of gross domestic product, below the government's forecast of 5.3 percent, Kudrin said.

The minister also said that "given such favorable oil prices, $75-77 per barrel this year, we should achieve a zero deficit by 2015."

Dvorkovich said the budget deficit can be reduced through the development of economic activity and liberating business from tax, bureaucratic and corruption hindrances.

MOSCOW, November 19 (RIA Novosti)

 

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