The Ministry of Finance of the Russian Federation proposed to abandon the indexation of social payments and salaries of public sector employees in 2015. As Finance Minister Anton Siluanov said, such a decision would make it possible to “ease the budget of the current and subsequent years.” He noted that the Ministry of Finance’s proposal was not discussed in the government.
Siluanov also stated the need to further reduce budget expenditures. According to him, the 10% reduction, which was announced earlier, is estimated at 900 billion rubles. The minister noted that expenses should be reduced by another 600 billion.
“The position of the Ministry of Finance, it was not discussed in the government, we believe that in the current conditions it would be possible to skip the indexation of salaries for both civil servants and other categories of citizens (public sector employees - note IF) and social payments in order to facilitate the budget of the current and subsequent years, not to stimulate consumption, additional demand, including for imported goods,” he said.