Rus News Journal

The Moscow City Council plans to refuse the three-year budget for crisis

At Moscow City Council session on May, 27th deputies change in the law " have passed; About the budgetary device and budgetary process in the city of Moscow . According to amendments, at decrease in incomes more than on 15 % in comparison with the planned level, the Moscow City Council can refuse formation of the three-year budget and make the plan of expenses only for the next fiscal year.
as the head of department of the finance of capital Yury Korostelev has noted, changes can be brought in the accepted budget in case of decrease in incomes more than on 15 % in comparison with the forecast put in the budget. In such situation deputies can recognise indicators of the planned period become invalid and to confirm city budget only for the next fiscal year. Korostelev has underlined that It is not necessary a question on refusal of three-year budgetary planning basically, and the norms are entered, allowing to correct process of budgetary planning in crisis conditions .

Korostelev has informed that for the first quarter budget incomes have made only 82 % by the similar period of 2008, that is have decreased on 18 % . Taking into account the voted budget for 2009 with increase in incomes at 10 % this decrease appears even more considerable. We assume that in the second quarter the negative tendency with formation of a profitable part of the budget will remain - Korostelev has told, having noticed that such state of affairs and has compelled to reconsider process of formation of the budget.

the chairman budgetary - the financial commission of Moscow City Council Igor Antonov has informed that during the current year, under the preliminary forecast, reduction of incomes will make an order of 30 % . Tax inspection predicts still bolshee reduction. So, gathering of the profit tax of the organisation now goes with backlog to 45 % - has noted Antons. Thus, there are conditions for revision of the three-year budget of Moscow. We will remind that in 2008 it has been confirmed for 2009 and the planned period 2010 - 2011.

as Korostelev, at following session of Moscow City Council has noted the bill of reduction of capital treasury, most likely, will be considered. It was brought by the mayor of Moscow Yury Luzhkov. In the bill it is specified that incomes of the city budget in 2009 can be reduced approximately on 418 mlrd rbl. to 969,837 mlrd rbl., expenses - on 310 mlrd to 1153 mlrd rbl. Excess of expenses over incomes as a result will make rbl. 182, 716 mlrd rbl.

the Budget of Moscow current year already has been changed in connection with an economic crisis. Then the profitable part has been planned at level 1387 mlrd rbl., and account - 1462 mlrd rbl. Under pre-crisis forecasts, incomes should make nearby 1500 mlrd rbl. And expenses - nearby 1600 mlrd rbl.