As a result of the increased spending, the budget has exceeded the spending level of last year
In November 2006, 468.4 billion rubles were spent from the Russian federal budget, 47 percent more than was spent in October and 37 percent more than in an averaged month. Thus as a result of the increased spending, the budget has exceeded the spending level of last year.
In December, 659.6 billion rubles need to be spent, that is 15.2 percent of the annual plan, or else some of the spending will have to be carried over into January.
According to a preliminary estimate published by the Finance Ministry yesterday, the federal budget from January to November of this year received 5.662 trillion rubles' income (112.2 percent of plan) and financing expenditures were 4.166 trillion rubles (96 percent of plan, taking into account recent amendments). Slow fulfillment of the expenditures written into the budget threatens to make the traditional post-holiday spike in inflation especially severe at the beginning of next year. That threat is now fading, however.
The Finance Ministry is so far unwilling to name expenditures that can be carried over to next year. Under the Budget Code, carrying fund over the year is not possible, except in cases foreseen in budget legislation. The Finance Ministry is saying that it will be possible to evaluate the situation accurately only closer to the end of the year. That means that estimating the inflation spike will be impossible until them as well.