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1.6

1.8

1.5

1.7

20

15

16

16

13

14

4.Science

0.6

0.6

0.6

0.5

0.3

0.3

8

7

6

4

2

3

5. Social andcommunal services, incl.

16

13.8

18.0

18.0

15.3

16.2

208

153

183

159

131

130

Education

0

3.8

4.3

4.4

3.4

3.7


42

43

39

29

30

Culture and mass media

0

0.6

0.6

0.7

0.6

0.5


7

7

7

5

4

Public health and physical culture

0

2.6

3.3

3.1

2.4

2.5


29

34

28

21

20

Social security

0

6.8

9.7

9.7

8.9

9.5


76

99

86

76

76

6. Stateservices to national economy**

18.3

20.9

12.7

10.9

9.2

8.8

238

232

129

97

79

70

7. Otherfunctions, incl.

9.3

9.4

8.0

7.1

7.6

9.7

121

104

81

63

65

78

Other expenditures

0

5.8

3.3

3.3

2.9

3.6


64

33

29

25

29

Expenditures on external economicactivity

0

2.3

3.8

0.8

1.3

1.2


26

39

7

11

9

Expenditures on servicing of internal Statedebt

0

0.7

0.6

2.6

2.3

4.7


7

6

23

20

37

Expenditures on servicing of external Statedebt

0

0.7

0.3

0.5

0.9

0.9


7

3

4

8

7

8. Loansminus repayments***

16.7

13.8

2.3

3.6

1.7

0.9

217

153

24

32

14

7

* Expenditures of the Russian Budget andUSSR Budget in the Russian territory

** The estimate subsidies to theimporters in the 1991 prices were Rbl.119bn (10.5% of GDP) in 1992 andRbl.12bn (1.1% of GDP) in 1993

*** The CIS countries, in the 1991 prices,made Rbl.94bn (8,7% of GDP) in 1992, and Rbl.3bn (0,3% of GDP) in1993Without reform, the conservation of the today’s level of financing will bringto aggravation of the qualitative situation of the Armed Forces. The processfor the law enforcement bodies is similar.

Further reduction is required for theexpenditures on the national economy, including such articles, as the Statesupport of the basic sectors of industry, the reproduction of the mineral andfeedstock base, the conversion of the defense industry, and the construction.In these cases, to reduce the expenditures, their structure needs to bechanged, accompanied with the reduction of subsidies, and increase of theexpenditures on sanation and shutdown of inoperative productionsites.

Table 1.15.

DraftFederal Budget for 1997

FederalBudget

Items

Law for 1996 (% ofGDP, Rbl.2100trln.)

Execution in 1996 (%of GDP)

Execution in 1996, %of Law

Law for 1997 (% ofGDP, Rbl.2727trln.)

Incomes

Tax incomes, ofthem:

13.0

9.7

80

13.74

Profit tax

2.7

1.4

56

2.81

Income tax

0.2

0.2

107

-

Value-addedtax

6.1

4.5

79

6.3

Excisetaxes

2.0

2.0

107

2.78

Specialtax

0.6

0.1

18

0

Payments for use ofnatural resources (royalty)

0.3

0.2

72

0.42

Tax on purchase offoreign notes

-

-

-

0.08

License fee forproduction and sale of alcohol

0.1

-

0.13.

Tax on transactionswith securities

0.1

0.0

0

0.73

Taxes on foreign tradeand external economic operations

1.4

1.0

77

0.80

Other taxes, levies,and duties

0.2

0.3

161

0.25

Non-taxincomes

1.9

1.9

107

0.93

Goal-orientedbudgetary funds

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