#12 - RW 271
DEFENSE TO BE TOP-OF-THE-LIST EXPENDITURE IN 2004 BUDGET

MOSCOW, August 28th, 2003. (RIA Novosti Alevtina Schepetina). - The biggest item of expenditure in the 2004 budget will be defense, Mikhail Zadornov told journalists at the RIA Novosti news conference. He is the deputy head of the budget and taxes committee of the State Duma.

"The top priority in the 2004 budget will be expenditures on the emergency situations and defence ministries. In the total budgetary expenditure, they will account for a three-percent increase from 25 to 28 percent. It is much indeed," Zadornov said.

Simultaneously, he spoke of the need to hold a discussion on the draft budget and some of its articles so as to follow the efficiency of using state resources.

"We should know on what and how they are spent. We should know the deadline set for projects taking money", he said.

Zadornov also spoke of the need to reform the Armed Forces.

"Without army reform I don't believe in efficient investments", he added.

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