Russia to revise spending if oil prices fall more--fin minister

MOSCOW, Oct 6 (PRIME) -- Russia will have to revise all its expenditure commitments of oil prices continue to fall, Finance Minister Anton Siluanov said in an interview to Rossiya 1 TV channel on October 4.

“The only correct way will be to reconsider all expenditures…It will be essential for us,” Siluanov said, adding that alternative ways will be increasing taxes or deficit, “because we have recently approved many new programs, decisions, based on other macroeconomics.”

However, all 2015 commitments will be fulfilled. “The 2015 commitments will be fulfilled even if we have to use the Reserve Fund’s money. But what is next? Next we will have to reconsider our commitments.”

The government has already written an optimization plan, which includes government official layoffs. “We have envisaged firing some federal government employees in the budget for the next three years. It means a significant decrease of funding for the government machine from 2017.”

This year, the Urals oil price has fallen to U.S. $94.79 per barrel, while the worst scenario of Russia’s current monetary policy envisages the price falling to $99.5 per barrel in 2015.

Siluanov also said the government is not considering and will not consider imposing any restrictions on capital movement, as it will “hurt the ruble rate, hurt our currency positions.”

“The government did not consider currency control toughening, imposing additional currency regulations. Because, in fact, it is our victory. Because, if we impose any currency restrictions, capital will eventually surmount them, and we understand this,” he said.

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