The Finance Ministry wants to cut spending by up to 10% from next year.
Russia’s Finance Ministry wants to cut government spending by up to 10% from next year in a bid to restore the state’s finances following the coronavirus pandemic.
It has proposed cutting a total of $65 billion from the Russian budget over 2021-2023, Russian news outlet RBC has reported. Parts of the budget which are not ringfenced will see a fall in outlays of up to 10%, and defence spending could be cut by 5%, should the Finance Ministry proposal be accepted. Indexation of civil servants’ salaries could also be abandoned.
The government expects to spend around 23 trillion rubles ($325 billion) this year, with the draft for next year’s budget coming in at 21.2 trillion ($300 billion).
The plan would mark a return to fiscal conservatism, in line with Moscow’s post-2014 approach when it has prioritized running a budget surplus and building up a multibillion dollar financial cushion from oil profits.
The government is expected to run a deficit of around 5% of GDP this year, as the crash in oil prices hits revenues at the same time the government has ramped up its spending through bonuses for medical staff and extra payouts for families with children.
Russia has also delayed its flagship domestic spending program — the $360 billion National Projects package of infrastructure improvements and other spending initiatives — from 2024 to 2030.
(C)MOSCOW TIMES 2020
FISCAL CONSERVATISM AKA MORE POVERTY, LOWER WAGES, LESS HOSPITALS, LESS OF EVERYTHING.
SANCTIONS, CORONA, OCCUPATIONS, AND TOTAL CORRUPTION WILL FINISH RUSSIA IN 3 YEARS.
Oh Veth, you’re so negative. Moskovia still has plenty of rats, cats and dogs to dine on. A sprinkle of Palm Oil cheese and some nice tree bark…yummy……….
Red water to wash it down with.
Uuuugh! During this quarantine we’ve gotten desperate enough to try to stream some Russian movies since there aren’t any Ukrainian movies. In one scene this lady was taking a bath in red/brown water. Disgusting! Makes you wonder why they don’t just sell brown bath tubs…
You are missing three Ukrainian movies that are masterpieces of cinema: Mr Jones (joint Ukraine/Poland production) and Haytarma, directed by a Ukrainian patriot : Akhtem Seitablayev; a Krym Tatar who also directed Cyborgs- Heroes Never Die.
Mr. Jones was great. I do wish though, that there was a little more emphasis put on the Holodomor.