Medvedev: the budget costs Russia will have to significantly reduce

Medvedev: the budget costs Russia will have to significantly reduce


From the number of projects in the framework of the spending cuts will have to give some to postpone to a later date, said the head of the government Dmitry Medvedev at meeting on execution of the budget.

SLIDES, 15 Jan. The Russian authorities will have to reduce substantially Federal spending for 2016, abandon a number of projects, said the head of the government Dmitry Medvedev at meeting on execution of the budget of the current year.

“We will look, what costs need to reduce, and now, unfortunately, greatly reduce, not as we did recently. What kind of projects we simply will be forced to abandon, or to postpone to a later date”, — Medvedev said, adding that he instructed ministries and departments to submit proposals to reduce spending and the number of the state apparatus.

On Wednesday, Finance Minister Anton Siluanov said that the Russian government has taken a decision on optimization of the budget, the Ministry has until mid-January to prepare and submit to the Finance Ministry its proposals on the reduction of costs by 10%. And the proposal to adjust the budget of the Russian Federation for 2016 should be ready by the end of the first quarter.

The Finance Ministry proposes to adjust the budget in 2016 based on the average price of oil in 40 dollars for barrel. Now there laid the price of oil Urals in $ 50. Oil prices steadily falling over the past 18 months because of the glut in the oil market and a high level of production of “black gold”. In the new year the price of a barrel of Brent oil was already down in the area of 30.5 per dollar. The Minister of economic development Alexei Ulyukayev expressed the view that low oil prices will persist for a long time.