State Council members pass three-year budget plan in first reading

The meeting of the State Council of the Republic of Tatarstan of the third convocation opened in the conference hall of the RT State Council on October 22. RT President Mintimer Shaimiev took part in the meeting.

The key issue during the meeting was the consieration of the draft budget for 2009 and for the planning period of 2010 and 2011 in the first reading.

Tatarstan Economy Minister Marat Safiullin delivered a report on the key social and economic provisions for 2009-2011. A focus on innovations is required, to be able to support the high economic growth rate, the minister considers. To provide the appropriate conditions in this direction, the investment climate should be further improved, mainly with a view to enhancing the processing industry’s competitiveness.

Marat Safiullin went on to say that the people’s real incomes would in the next three years increase by a factor of 1.3, which is equal to their annual gain of 8-10 percent. The cash incomes’s purchasing power versus 2007 is to increase by a factor of 1.2.

The average rate of wages growth is projected 20 percent, the same as in Russia. In the next three years, the average monthly salary should increase by a factor of 1.7 versus 2008, to total in 2009 over 18 thousand rubles, and in 2005 over 25 thousand roubles. The real salary is to increase by a factor of 1.3.

“The most important task we are facing is improving productivity, as it is the ultimate factor that influences the economy’s competitiveness,” claimed the minister. “The average annual productivity rate growth in Russia is 7 percent.” According to the minister, Tatarstan is to develop faster than Russia.

“The Republic of Tatarstan’s forecasted consolidated budget for 2009 is 122.2 billion roubles,” said Finance Minister Radik Gizatullin.

The majority of the MPs agreed with the budget's highlights. All amendments are to be introduced before 3 November in the 2nd reading.