Russian PM calls for extra steps to replenish budget, cut costs

GORKI, Moscow Region, Jan 18 (PRIME) -- Russian authorities will need additional measures to replenish the budget and reduce costs because the unpredictable oil price dynamics pose a threat to fulfillment of the state budget investment liabilities, Prime Minister Dmitry Medvedev said at a government meeting Monday.

“Oil prices remain the same, their further dynamics are hard to predict as well. Furthermore, as you know, sanctions have been removed from Iran and oil has continued decline today. Therefore, big risks for replenishment of the budget, budgetary liabilities remain,” Medvedev said.

“That is why we need additional measures both in the area of replenishment of the budget revenue and in a more energetic reduction of spending, what we were talking about at a meeting on Friday,” he said.

The prime minister said that the earlier announced 10% budget spending reduction in 2016 will not envisage proportionate decrease of budget spending items.

He said that the Finance Ministry earlier proposed a set of ideas to tackle the budget issues and some of them “touch a wide range of sensitive areas.” The government will soon have to decide on the acceleration of privatization, effectiveness growth measures in state-run companies and works with accounts receivable.

According to Medvedev, the current situation will not make the government abandon the plans to modernize the structure of the economy.

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