A Ministry official declined to comment on Vedomosti opportunities to further reduce costs, adding that the Ministry is still working with other agencies in order for optimization by 10%.
MOSCOW, 22 Jan. The Russian government is discussing the possibility of further reduction of budget expenditures in excess of the decision about 10% cuts, if oil prices in the near future will not return to higher values, wrote in Friday newspaper “Vedomosti” with reference to the three Federal officials. According to interlocutors of the newspaper, almost all government agencies have hidden opportunities for optimization.
“If such low oil prices will last for a long time, 10% do not work, says official financial and economic bloc of the government”, — writes the edition.
Thus, according to one source, the potential to reduce some government agencies for more than 10%, and almost all the hidden opportunities to reduce. “Moreover, when we talk about reduction, we are not just talking about the dismissal of staff is and sale of assets, and lower costs”, — quotes the edition of his word.
The official familiar with the plans of the Ministry of transport, told “Vedomosti” that the Ministry would cut spending by another 7% (already reduced by 10%) — mainly at the expense of further redundancies. In a press-service of Department on the request of the newspaper did not respond.
A Ministry official told the newspaper that the Ministry is still working with other agencies in order for optimization by 10%, refusing to comment on the feasibility of further reducing costs.
The government in connection with the fall in oil prices has taken a decision on optimization of the budget for 2016, the Ministry had until mid January to prepare and submit to the Finance Ministry its proposals on the reduction of costs on unprotected articles by 10%. Final proposals for revising the budget planned to the end of the first quarter. The Finance Ministry proposes to adjust the budget in 2016 based on the average annual price of Urals oil in 40 dollars for barrel. Now in the document based on the price of $ 50.
