The law’s purpose is to ensure funding for Russia’s budget spending commitments. It increases the 2009 federal budget expenditure and deficit while maintaining budget revenue at the level previously approved.
The budget spending changes are linked to planned measures to top up banking sector capitalisation and buy up an additional share issue in Russia’s favour, and also to decreased budget funding for projects that will be carried out using targeted foreign loans. The law adjusts the upper limits of the state domestic and foreign debts.
The amendments made by the law will ensure that Russia has a balanced federal budget in 2009.