The Russian government is discussing the possibility of reducing federal budget expenditures due to declining revenues and a growing budget deficit, reports Reuters, citing two sources close to the cabinet of ministers.
According to them, budget expenditures could be reduced by about 10% in most chapters, except for those for defense and so-called “protected” expenditures, including social ones. The final decision will largely depend on the evolution of oil prices.
“The Ministry of Finance has told the main administrators of the budget funds that they need to cut expenditures. Now everyone is analyzing what exactly could be cut,” one of the Reuters sources said.
According to another source, the most vulnerable are expenditures considered non-essential. Among these could be the postponement of new projects, freezing of construction, or reduction of road repair works.
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