The Finance Ministry’s proposal to freeze Federal spending in nominal terms for three years was approved at a meeting with Russian Prime Minister Dmitry Medvedev, which took place on Monday, July 4. About this “Vedomosti” told the participant of the meeting and two Federal officials.
About the Ministry’s proposal to fix Federal spending at the level 15,78 trillion rubles became known last week. “It’s the risk-free level of expenditure that we can afford in the current situation, taking into account all risks,” — said “Vedomosti” representative of the Ministry of Finance.
Medvedev’s press Secretary Natalya Timakova said that the meeting heard suggestions, but no decisions were taken. “[The government’s ] Commission of such decision is not accepted”, — she explained.
The participant of the meeting told “Vedomosti” that with the approach of the Ministry of Finance all agreed and actually it was approved. “Although every Minister, and many complained that the money for all the expenses is not enough. These comments will be processed and presented on Thursday a decision”, — said the interlocutor of the newspaper.
Another Federal official said that, in General, the approach has been approved, but there may be redistribution within policy papers and specific figures will be refined. He noticed that with the need to freeze spending and agree Russian President Vladimir Putin.
According to the Finance Ministry’s proposal, the costs for 36 of the 42 state programs (they account for about half of the budget) be reduced even in nominal size. Exception costallat pension costs, economic development and public financial management (debt).
Last week, “Vedomosti” noted that if approved the proposals as much as possible (more than twice in three years) reduced funding for the state program on development of physical culture and sports. More than half, from 149,3 billion rubles in 2016 to 65,98 billion in 2019, will cut funding for socio-economic development of the Crimea will be cut by more than half, from 149,3 billion rubles in 2016 to 65,98 billion in 2019. Closed part of state programs, in particular, defense spending can be reduced by 15% over three years.
According to the President of the Center for strategic research (CSR) Alexei Kudrin, the idea of fixing the nominal cost is reasonable. “It’s just psychologically easier [than reduction] and allows you to take those guidelines that need to be preserved”, — told ex-the Minister of Finance. Kudrin also supported the need to reduce costs in real terms, indicating that the Federal budget deficit in 2016 short years will be above 3% of GDP.