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The Moscow Times, September 25, 2002

Yabloko: Budget 'Hydrocarbonated'

By Valeria Korchagina

The State Duma's Yabloko faction presented its annual alternative budget Tuesday while slamming the government for once again drafting a "hydrocarbonated" budget hooked on oil and gas.

"This is a hydrocarbon budget," said first deputy Yabloko head Sergei Ivanenko. The 2003 budget -- which faces its first reading in the Duma on Wednesday -- reflects a lack of any effort to create mechanisms for economic growth that could take Russia away from the "oil needle the country has been addicted to" for decades, he said.

The oil and gas sectors are responsible for about 50 percent of all budget revenues, he said.

Wednesday's reading is to set key macroeconomic factors such as budget revenues, the inflation rate and the ruble/dollar exchange rate, as well the forecasted crude oil price on which the budget is based.

Yabloko is in general agreement with key macroeconomic factors and is giving its members a free choice on how to vote on the first reading.

Ivanenko, however, said the government had failed to account for some 53.5 billion rubles ($1.7 billion) from export duties, taxes and other sources.

This cash, Yabloko's representatives said, could be spent on various urgent and socially important issues such as state employees' salaries, army reform, ambulance services and programs aimed at children.

Deputy Yabloko head Igor Artemyev said putting 5 billion to 10 billion rubles into Russia's ailing ambulance service could save thousands of lives. Every tenth person who dies from a heart attack was lost because basic medical help arrived too late, he said.

Union of Right Forces deputies also said Tuesday that the budget was far from perfect.

"I will recommend to my colleagues thet they vote against the budget in the first reading because the government refuses to open many of the articles of the defense budget that are secret," said Boris Nadezhdin, the first deputy head of the Union of Right Forces, Interfax reported.

See also:
Budget 2003

The Moscow Times, September 25, 2002

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