OREANDA-NEWS. December 11, 2009. Transcript of the opening of the meeting: Vladimir Putin: Good afternoon, ladies and gentlemen. Let us start with exchanging urgent information.

Mr Kudrin, please say a few words about the fluctuations of the budget deficit.

Alexei Kudrin: The 2009 federal budget is coming to an end with the year. When we were submitting the revised budget to the State Duma in February-April, we appointed the deficit at 8.3%.

Now, we think it will be 6.9%, considering oil prices higher than USD 41, which we proceeded from when drafting the budget (now, the year's average has risen slightly above USD 60), and a part of the money earmarked for bank capitalisation stocked up instead.

If we take into account subordinated loans to VEB and Russian banks engaged in increasing capitalization, and quasi-fiscal measures, the deficit will be 7.3%, provided all ministries keep within budget expenditure limits. That is our forecast.

Vladimir Putin: Good. As you know, there were many questions about maternity funds during my television talk to the public, and suggestions to change the patterns of their spending, somewhat.

We have recently coordinated the rules of spending a part of maternity funds to improve the recipient's accommodations. I have signed the rules for now. Mr Zhukov, please comment.

Alexander Zhukov: The law on additional support of multiple-child families was adopted three years ago. Beneficiaries-the families whose second or third child was born three years ago-will have the right to spend their maternal capital since January 21.

The initial capital was 250,000 roubles. Now, after several indexations, it is 343,378 roubles.

Vladimir Putin: It was 317,000 at the beginning of the year, if I am not mistaken.

Alexander Zhukov: That's right. It will be 343,000 since January 1. The anti-crisis programme has made us authorise the spending of maternal funds on housing mortgage loans even before our previous deadline. The money can be spent on loan and interest payments alike. We have also authorised 12,000 rouble lump grants out of maternity funds.

Both measures have proved very timely. The Pension Fund has met 92,000 applications for mortgage debt and interest payments from maternity funds to total 23 billion roubles, as of December 4.

12,000 rouble lump grants have been paid to a million and 89,000 people to total 13 billion roubles.

Maternity funds will be used to all purposes since January 1-spent not only on housing construction but also on education and pension accumulations. The budget earmarks 102 billion roubles for the purpose. The Pension Fund expects 356,000 relevant applications in 2010.

There were really many requests on the hot line and applications to the Government to extend the limits of spending maternity funds.

In particular, a decree will be signed authorising not only the holder of the maternity fund certificate (mothers in most instances, and occasionally fathers) but also the holder's spouse to use maternity funds on housing purchases and construction. There were many requests on this score.

It has also become possible to spend maternity funds on private house construction loan payments during construction, not only after it as was the case previously.

Maternity funds could be spent only on mortgage loan payments in the outgoing year. Since January 1, they can be spent to buy a flat or build a private house.

Vladimir Putin: Good. Now, say a few words please about federal budget transfers on Social Insurance Fund deficiency payments.