Govt to discuss debt policy till 2014 & cuts for residents of SEZ

MOSCOW, August 11 (Itar-Tass) — The Russian government presidium will map out the main areas of the debt policy for 2012-2014 at its meeting on Thursday. The report will be delivered by Deputy Finance Minister Sergei Storchak.

According to the ministry’s plans, Russia may borrow 606.1 billion roubles (203.8 billion roubles in 2012, 201.8 billion roubles in 2013 and 200.5 billion roubles in 2014). At the same time, state domestic borrowings in 2012 are expected to be 1,602 billion roubles and in 2014 – 1, 626 billion roubles.

At the same time, the Finance Ministry calls “for limiting placement of capital of Euro bonds in roubles in the international market”.

“State borrowings will be the main source of financing the deficit of the federal budget, which will persist over the entire planned period,” the document stresses. The volume of the state debt will rise annually over the planned period, reaching 12 trillion roubles by the end of 2014 or 17 percent of the GDP.

The Finance Ministry noted that it amounts to 4.6 trillion roubles as of July 1, including the state domestic debt – 3,600 billion roubles and the foreign debt – 36.8 billion US dollars (or one trillion roubles).

Later in the day, Deputy Finance Minister Sergei Shatalov will submit draft amendments to the Tax Code, cutting down the tax load on residents of special technology development economic zones.

“It is planned to set a tax rate for the tax on profit of resident organisations of special technology development economic zones, subject for deduction to the federal budget equal to zero percent,” the document says.

The ministry also suggests “providing for a possibility of establishing by laws of subjects of the Russian Federation lower tax rates for the tax on profit of organisations, subject to deduction to budgets of subjects, but no higher than 13.5 percent”.

Interior Minister Rashid Nurgaliev will describe the meeting draft amendments to the budget code, permitting the ministry to make expenses more efficiently to protect participants in criminal judiciary.

“A suggested order of finance, material and technical assistance as well as control over outlays, appropriated for state protection, will be implemented within funds, provided for to realise the State Programme for ensuring security of victims, witnesses and other participants in criminal judiciary,” the ministry specified.

Deputy Transport Minister Sergei Aristov will describe presidium members draft amendments to the Civil Procedure Code, raising efficiency of juridical protection of rights of crewmembers of Russian sea-going ships.

Foreign Minister Sergei Lavrov delivered a report on forwarding to the president a protocol on changes in the Collective Security Treaty for submitting it for ratification.

The presidium will also discuss changes of functions of federal departments. For instance the Ministry of Health and Social Development will have powers to render assistance to socially oriented non-commercial organisations, implementing social support and protection of citizens, activities in public health, preventive measures and protection of citizens’ health.

It is planned to specify for the State Reserves Agency general principles of forming, deploying, storing, using and supplementing stocks of the state material reserves.

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