PM: Russia to save 700 bln rbl, redistribute 1 tln rbl in 2016

MOSCOW, Oct 6 (PRIME) -- The Russian government plans to save about 700 billion rubles by cutting inefficient spending and redistribute around one trillion rubles in the 2016 budget, including social spending, Prime Minister Dmitry Medvedev said at a government meeting Thursday.

“We are working on reduction of inefficient budget spending. We plan to save around 700 billion, even more, this year. And we distribute the money in favor of more important directions. Thus over one trillion rubles will be redistributed, first of all the money will go to fulfill our social obligations,” Medvedev said.

The budget requires a revision partially because of falling oil prices, he said. “It developed under a less favorable scenario than we expected. At the beginning of the year the price of Urals oil blend, as it is known, fell to its 12 year-low. The average annual price is significantly lower that the price set in the budget,” Medvedev said.

“The revenue situation is better on a number of items than projected, but nevertheless it only partially offsets a fall in oil prices. The budget income part is being reduced by around 370 billion rubles this year.”

Medvedev also said that the state defense order is fulfilled well and is financed in the required volume.

(62.4583 rubles – U.S. $1)

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