MOSCOW — Exceeding the inflation forecast specified in the federal budget is unacceptable, Russian President Vladimir Putin has declared in his address to the Federal Assembly, devoted to 2006's budget policy. According to information from the President's website, this address outlines the main goals and targets for the budget policy for 2006. In Putin's opinion, a gradual decrease in inflation should be continued in Russia in 2006-2008. Achieving this goal requires improvement of the quality of the government's social and economic development forecasts. Additionally, considered decisions with regard to budget expenditures should be made.

It is pointed out in the President's address that comprehensive analysis of consequences of structural reforms in the economy and the social sector, which are now being implemented, on the budget is necessary. Otherwise, the budget would become a macroeconomic instability factor. Putin emphasized that some measures were to be taken to guarantee the budget system's integrity and stability. Specifically, in the President's view, a financial plan for 2006-2008 should be prepared. Additionally, the transition to the distribution of budget resources between administrators of budget expenditures, depending on goals set for them, should be completed.

The President remarked that money from the Stabilization Fund, exceeding the specified minimum level, could be used for replacing sources of foreign debt repayments only, and any changes in the Stabilization Fund's parameters should not undermine the main principles specified during the fund's creation.