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. Last Updated: 07/27/2016

Gas Taxes Won’t Be Raised

The government will not raise taxes on natural resources extraction or export tariffs on gas to cover a looming budget deficit, a government source told reporters Wednesday after a meeting to discuss the 2010 federal budget.

“The funds had already been accounted for in the budget, but Gazprom has promised to make up for it in different ways,” the source said, Prime-Tass reported.

Gazprom head Alexei Miller came out against an increase in gas extraction and export tariffs on Monday, telling Prime Minister Vladimir Putin that he did not think that they were justified.

The government’s budget committee met at Putin’s Novo-Ogaryovo residence to consider the Finance Ministry’s proposal for next year. The ministry has forecast a federal deficit next year of 7.5 percent of gross domestic product, which is to be covered mostly by exhausting the Reserve Fund and large-scale government borrowing abroad.

Speaking before the meeting, Putin promised to make social welfare programs a priority in next year’s budget, setting aside 600 billion rubles ($19 billion) for the “modernization” of the pension system.

The budget will also include measures to stimulate demand for domestic manufacturing and the development of the country’s infrastructure.

The government is set to approve a final budget Thursday.