1. Е.V.Volodına Budget accounting and reporting reforms ın Russian Federatıon

2. Expenditures management  Annual budget  «financing of expendıtures»  Targeted usage – compliance with plan  Indexation of expenditures and «restricted budget»  Reportıng on funds usage Results managemenmt  Bultı-year fiscal plan (budget)  Expendıture lıabıltıes performance  Targeted usage – output based  Extentıon of authorıtıes and responsıbılıtıes of budget users  Reportıng on funds usage Draft legıslatıon Transfer to a new model of the budget process organısatıon организации

3. Budget account structure Administrative and functional classification Code of activit y Synthetic account code Analytical code Public administration operations sector code 1-17181920212223242526 Synthetic account object Chart of account code

4. Budget income classification

5. Budget expenditures classification

6. Classification of sources for budget deficit financing

7. As of January 1, 2007 in mln USD Execution balance of the federal budget

8. ASSETS CODE OF LINE Budget funds as of beginning of a year Budget funds by the end of the reporting period 1237 I. Non=financial assets Fixed assets (initial cost, 010100000) *010186 771,7198 261,1 Amortization of fixed assets (010401000 - 010407000) *02072 638,281 244,0 Fixed assets (depreciated cost, стр.010 - стр.020)030114 133,4117 017,1 Intangible fixed assets (initial cost, 010200000) *040308,1304,4 Amortization of intangible fixed assets (010408000) *05013,321,5 Intangible fixed assets (depreciated cost, стр. 040 - стр.050)060294,8282,8 Non=produced assets (initial cost, 010300000)07046,3 Total by section I (стр.030 + стр.060 + стр.070 + стр.080 + стр.090 + стр.140)150171 906,4193 272,1

9. II. Financial assets Fiscal means of institution (020100000)160420,6418,3 Means on budget accounts (020200000)17066 136,8119 226,6 Financial investments (020400000)1803 103,63 933,4 Settlements with borrowers on incomes (020500000)2104 168,66 525,5 Settlements on given advances (020600000)2303 164,54 485,2 Settlements with borrowers on budget credits (020700000)26090 946,583 736,8 Settlements with reporting units (020800000)280138,8156,6 Settlements on deficiency (020900000)320198,9249,3 Settlements with other borrowers (021000000)3400,0 Total by section II (стр.160 + стр.170 + стр.180 + стр.210 + стр.230 + стр.260 + стр.280 + стр.320 + стр.340)350168 278,4218 731,7 Balance360340 184,7412 003,8

10. LIABILITIES CODE OF LINE Budget funds as of beginning of a year Budget funds by the end of the reporting period 1237 III. Obligations Settlements with borrowers on debt commitment (030100000)370117 396,690 939,1 Settlements with suppliers and vendors (030200000)3801 079,11 273,7 Settlements budget payments (030300000)420135,6305,2 Other settlements with с кредиторами (030400000)44039,740,0 Total by section III (стр.370 + стр.380 + стр. 420 + стр.440 +стр.450)460118 651,192 558,0 IV. Financial result Financial result (040000000), including:470221 533,7319 445,8 BALANCE600340 184,7412 003,8

11. Report on financial results of activity (by federal budget) As of January 1, 2007 in mln USD

12. Name of indicator Code by КОСГУBudget activity 134 Revenues 100 283 704,8 Tax revenues 110 140 346,7 Revenues from property 120 8 283,4 Revenues market sale of goods, work, services 130 2 707,9 Mandatory withdraw amounts 140 689,4 Grant and non=refundable receipts form budgets 150 1 423,9 Membership fees, utilities payments 160 0,0 Revenues of future periods 130 0,0

13. Expenditures 200 185 860,4 Wages and allowances 210 32 782,5 Purchase of services 220 20 479,8 Debt commitment service incl: 230 6 228,9 domestic debt commitment service231 2 146,9 external debt commitment service232 4 082,0 Grant and non=refundable transfers to organizations 240 30 282,2 Grant and non=refundable transfers to budgets incl: 250 58 946,2 transfers to other budgets of the Russian budget system251 57 946,2 transfers to supranational organizations and governments of foreign countries252 122,1 transfers to international organizations253 877,9 Social security 260 7 852,3 expenditures on operations with assets 270 23 594,5 Other expenditures 290 5 694,0 Net operational result 000 97 844,4 Operational result before taxation 000 97 844,4 Profit tax 000 0,0

14. Operations with non=financial assets 000 21 319,4 Net receipt of assets 000 12 000,9 Net receipt of intangible assets 000 2 478,0 Net receipt of non=productive assets 000 -46,3 Net receipt of financial recourses 000 6 886,8 Operations with financial assets and liabilities 000 76 525,1 Operations with financial assets 000 50 431,9 Net receipt of funds on budget accounts 000 53 066,1 Net receipt of securities, other than shares and other forms of capital participation 000 -285,4 Net receipt of securities and other forms of capital participation 000 1 115,1 Net provision of budget credits 000 -7 209,7 Net receipt of deposits, other financial assets 000 Net increase of borrower liability (except budget credits, loans) 000 3 745,7 Operations with liabilities 000 -26 093,1 Net increase of domestic debt liabilities 000 6 724,8 Net increase of external debt liabilities 000 -33 182,3 Net increase of credit liability (except domestic and extrenal debt liabilities) 000 364,4