GDP GROWTH IN 2005 FORECASTED AT 6.5%

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MOSCOW, April 2 (RIA Novosti) - The Russian Economic Development and Trade Ministry raised the outlook for GDP growth in 2005 to 6.5%, the ministry press service said Friday.

This indicator has been calculated proceeding from the average annual oil price at $39 per barrel.

Earlier the ministry forecasted GDP growth within 5.8-6.3%.

"The growth of industrial production is forecasted at 5.1%, inflation on year results will be within 10%," specified the press service.

According to a short-term forecast, in 2006 GDP growth will be 5.9% with the oil price at $34 per barrel. In 2007, GDP growth is planned at 6.1% with the oil price at $33 per barrel. In 2008, the ministry expects the GDP to grow by 6.2%.

Inflation in 2006 is forecasted at 8%, in 2007, at 6-7%, in 2008 - at 4-5.5%.

Meanwhile, the Russian government's budget commission approved the variant of scenario conditions envisaging in 2006 the calculated price for oil at $34 per barrel and the sum sent to the Stabilization Fund at $27, reported the government press service after the commission session led by Premier Mikhail Fradkov.

"The scenario adopted by the budget commission also envisages the realization of the tax novations package being prepared, a considerable raise of pensions and wages by 2008, financing of key reforms in the social-economic sphere and infrastructure projects," said the press service.

The statement reads that it was stressed that in 2006 and later, the federal budget surplus will remain.

The budget commission also proposes reducing the rates of customs duties on some kinds of equipment having no Russian analogues by 50-67%.

The commission paid special attention to discussion of issues of using the customs-tariff measures when importing and exporting goods, implementing the tax policy as regards customs payments and perfecting customs administration.

"It was decided to increase the quality of customs administration due to introduction of new information technologies," said the press service.

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