Siluanov: reduction of costs by 10% will give a budget of 512 billion rubles

Siluanov: reduction of costs by 10% will give a budget of 512 billion rubles


The Russian government has already taken a decision on optimization of budget expenditures will be reduced by 10% with the exception of the so-called protected articles, proposals for updates should be ready by the end of the first quarter.

VLADIVOSTOK, 16 Jan. Reduced costs by 10% will give to the budget of the Russian Federation in 2016 an additional 512 billion rubles, said Finance Minister Anton Siluanov.

“Yes, really, 10%. By the way, a reduction of 10% with the exception of the so-called protected articles will provide an opportunity to transfer funds or to save on the amount of 500 billion rubles, 512 to be exact,” — said Siluanov in interview to TV program “Vesti on Saturday”.

This week 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.

On Friday, Prime Minister Dmitry Medvedev also said that the Russian authorities will have to reduce substantially Federal spending for 2016, abandon a number of projects.

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 crude oil has already dropped below $ 30. The Minister of economic development Alexei Ulyukayev expressed the view that low oil prices will persist for a long time.