In his budget address for 2008-2010, the Russian President outlined the country's economic priorities for the three-year period, proposing to transform the Stabilization Fund, established to accrue surplus revenue from high world oil prices, into the reserve fund and the future generations fund.
The reserve fund is designed to finance federal budget spending in the case of a dramatic fall in oil prices in the medium-term perspective while the future generations fund is expected to finance important infrastructure projects, increase pensions and, possibly, reduce taxes.
"On February 1, 2008, when the reserve fund is formed, part of the Stabilization Fund to the amount of 10% of Russia's GDP produced in 2007 will be transferred to the account," Alexei Kudrin said.
Russia's economics ministry earlier said Russia's GDP is expected to rise 6.1% in 2007 to 30,610 billion rubles (about $1,175 billion).
