OREANDA-NEWS. June 29, 2010. In his address, Dmitry Medvedev outlined the main objectives of budget policy.

First of all, it is essential to ensure macroeconomic stability and to lower inflation, proceeding from the need to decrease federal budget deficit by 2013 by no less than 50% compared to 2009, the President said.

It is also vital that budget policy corresponds to the nation's strategic development priorities and its fiscal potential. Dmitry Medvedev also noted it was time to begin to discontinue anti-crisis measures and devote the main part of the budget to financing long-term government programmes from 2012 onwards.

The Russian leader also stressed the importance of budgetary support to major investments in innovations, sharing risks with private investors and entrepreneurs. This approach should be employed in the establishment of the Skolkovo Innovation Centre. Other priorities in this area mentioned by Dmitry Medvedev include making broadband internet available to 90% of the population, and digital television to all Russians.

Innovation support, the President emphasised, must go hand in hand with investment in quality education at all levels.

Dmitry Medvedev underlined the importance of fulfilling the Government's commitments to pay out pensions and social benefits and informed the meeting participants that a pay indexation for public sector employees and the Armed Forces will take place next year. The President also touched on social security, healthcare, demographic policy and tax policy issues.

The objective of defence spending must be to create a type of the Armed Forces. In 2011, the implementation of the new State Arms Programme for the period up to 2020 will begin, and the Federal Targeted Programme on Reforming the Defence Industry is being drafted at present. At the same time, the share of allocations for innovative research and projects will grow.

Dmitry Medvedev issued instructions to the Government to submit proposals on reducing the share of state property and to cut the number of state employees by about 20%.

Taking part in the meeting were members of the Government, including Prime Minister Vladimir Putin, Speakers of both houses of Parliament Sergei Mironov and Boris Gryzlov, and Chief of Staff of the Presidential Executive Office Sergei Naryshkin.