MOSCOW - The Russian Cabinet on Thursday adopted a draft budget for 2003 that raises expenditures for the court system, policy, armed forces and science, Russian media reported.
"It is a strenuous budget, which takes into account a possible growth of risks connected with the world economy," Deputy Prime Minister Alexei Kudrin was quoted as saying by the ITAR-Tass news agency, referring to a possible drop in international oil prices.
He pledged that there would be no deficit.
Revenues are expected to top about 2.4 trillion rubles (dlrs 77.4 billion) and expenditures to equal approximately 2.3 trillion rubles (dlrs 77.2 billion). It is slated to be Russia's third surplus budget.
Kudrin said that the government hopes to avoid foreign borrowing next year but would reserve the right to issue up to dlrs 1.25 billion in Eurobonds. Russia will face a peak in foreign debt interest payments of dlrs 17.5 billion next year.
The government will aim to keep inflation between 10 percent and 12 percent, and the Cabinet is banking on a ruble exchange rate of 33.7 to the U.S. dollar - approximately 2 rubles higher than the current rate.
Russian Prime Minister Mikhail Kasyanov said that the government would earmark 33 percent more funds for the court system, which is undergoing reform, and would raise expenditures for law enforcement by 46 percent, science by 26 percent, technology by 22 percent and education by 22 percent, the ITAR-Tass news agency reported.
He said that the government would also try to cut taxes after it has gotten its debt payments in order.
"When we are through this period, we won't have to redistribute revenue any more," Kasyanov said. "Instead, we may reduce the tax burden, enabling the private sector to finance expenses the state doesn't cover."
The Cabinet will forward the budget to the lower house of parliament, the State Duma, by Aug. 26, Kudrin said.
/The Associated Press/
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