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. Last Updated: 07/27/2016

New Budget Draft Contains Old Tax Proposals

The Russian government has retained several old tax proposals in its new 1997 budget draft, a deputy in the State Duma, parliament's lower house, said Friday.

Budget committee member Oksana Dmitriyeva said the new draft preserved a 15-percent tax on government securities operations and an income tax on operations with banking deposits.

She said the taxes had already been rejected by the Duma and could be removed by a conciliation commission set up after parliament sent the original 1997 draft back to the government.

Duma deputies rejected the original document because of what they said were unrealistically high revenues plans.

"It is symptomatic that the government does not offer any other alternatives," Dmitriyeva said. "Borrowing on the domestic market has also increased a bit."

The government Thursday agreed on a new draft budget, cutting planned revenues to 432.8 trillion rubles ($79.4 billion) from 433.64 trillion in the first draft, and trimming expenditures to 523.5 trillion rubles from 524.34 trillion.

The budget deficit remains unchanged at 3.3 percent of gross domestic product, or 90.70 trillion rubles.

But First Deputy Finance Minister Vladimir Petrov told a cabinet meeting that social spending would rise. He gave no details of where the extra funding for that sector would come from.

The government will send the new draft to the Duma this weekend. The conciliation commission has 10 days to put it into shape.