PRESS: Russian govt may cut 2016 anti-crisis fund spending by 30%

MOSCOW, Feb 1 (PRIME) -- The Russian government plans to reduce spending from the anti-crisis fund in 2016 by about 30% to 150 billion rubles, business daily Kommersant reported Monday citing the latest draft of the anti-crisis plan submitted by ministries to the government on January 29.

The measure will help the government to keep a 70 billion ruble reserve. Almost no measures were excluded from the plan, except for purchases of new ambulance cars, commuter ticket subsidies and several other transport steps, but the funding sources were redistributed.

Under the new plan, federal budget loans to regions will cover 310 billion ruble initiatives, and for 270 billion ruble steps “the amount and the source will be defined during the budget fulfillment.”

The government removed an unpopular measure proposed by the Labor and Social Protection Ministry, to reduce pensions to retirees who still work, from the latest draft.

The new plan includes several steps easing running small business: a threshold of revenue amount for simplified taxation was raised twofold, exports were ordered to be supported by regional authorities.

Kommersant reported that 2016 is the last year when Russia can rely on its Reserve Fund; it will be largely exhausted by 2017 if oil prices remain at the current level.

(75.1723 rubles – U.S. $1)

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