Translated material
The Russian government decided to cut budget expenditures by 10 percent
The Government of the Russian Federation has decided to reduce budget expenditures by 10 percent in 2016. This is reported by Reuters with reference to two participants in a meeting with Prime Minister Dmitry Medvedev, which took place in December 2015.
The departments must submit their proposals for cost reductions by January 15, agency sources said. Otherwise, the decision will be “forced” by the Ministry of Finance.
According to him (one of the sources - Meduza) said, the 10 percent reduction in spending will not affect the so-called public-regulatory obligations, salaries to state employees and monetary allowances for military personnel and will save the budget about 700 billion rubles.
- Russia's budget for 2016 was drawn up based on the projected average annual oil price of $50 per barrel. At the end of 2015, oil prices accelerated their decline and fell below $40. On January 11, 2016, the price of Brent oil fell below $32 per barrel.
- Against the backdrop of falling oil prices, the exchange rate of the dollar against the ruble is growing. On January 11, the Bank of Russia set a record rate for 17 years at 75.95 rubles per dollar.