The Finance Ministry has proposed to cut budget spending in 2017 by 5%

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Finance Minister Anton Siluanov proposed in 2017 to reduce costs on unprotected parts of the budget by 5%. The budget deficit next year is estimated at 3.2% of GDP

The Finance Ministry has proposed the government to reduce next year’s number expenditures not related to the performance of their social obligations, has informed journalists the head of Department Anton Siluanov. According to him, some of these costs can “be optimized” by reducing spending on them by roughly 5%.

“A number of articles that are subject to consolidation, that the articles are not related to salary, social payments, pensions, benefits, number of programmes, not a high-priority spending — about one third of the total budget expenditure — proposed consolidation in the amount of 5% next year”, — said Siluanov at a briefing after the Cabinet meeting, which discussed the issues of planning of the budget for 2017-2019 (quoted by “Interfax”).

The Finance Minister explained that the spending of “consolidation” should be curtailed in point, while ministries and agencies should independently determine the items that will be subjected to a greater or lesser cuts. “In terms of preserving the nominal level of expenditure assessment of the current year and taking into account the additional obligations in connection with the indexation of social expenditures, we will have to do the optimization, and the identification of inefficient budget spending, which according to the results of inspections by regulatory authorities rather significant amount,” Siluanov warned.

Simultaneously, the Ministry of Finance has proposed to extend for the next three years the effect of the rules on the brief limits of expenditure commitments by 10% and not to budget the cost of financing new construction projects and projects. Assessment Siluanov, the Federal budget deficit of the Russian Federation in 2017 will amount to 3.2% of GDP vs more than 4% in the first half of 2016. In the future, the deficit will be annually reduced by 1 percentage point.

How to write “Vedomosti”, the meeting of the head of the government Dmitry Medvedev approved the freezing of Federal spending for three years at the nominal level 15.78 trillion Before the press Secretary of the President Dmitry Peskov said that the Kremlin shares the government’s position on the necessity of optimization of budget expenditures and bringing it in line with “economic realities in which we live.”

Earlier the Minister of economic development Alexei Ulyukayev spoke out against the “negative selection” at the reduction of inefficient spending budget and the division of his articles on protected and unprotected. “Then you may find that, maybe we can do without budget cuts, and will have a more reasonable indexing. And this moderate indexation on expectations of a return to economic growth and will give the balancing of the budget”, — said Ulyukayev in an interview with RBC.

Former Finance Minister Alexei Kudrin are skeptical about the plans of the selective reducing ineffective expenditures. “Authorities say that the need to reduce “inefficient” costs, but the problem is that inefficient spending in every budget,” — said the former Minister.

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