Russian min proposes to freeze budget spending to cut deficit

ST. PETERSBURG, Jun 20 (PRIME) -- Russia could freeze the federal budget spending in nominal terms at the current level of slightly more than 16 trillion rubles for several next years to cut the non-oil and gas budget deficit, Economic Development Minister Alexei Ulyukayev told reporters late on June 17.

“If for example we freeze the budget’s nominal spending, slightly above 16 trillion rubles, this means that we will reduce real expenditures at inflation pace. That’s why in real terms we will have a reduction by 5%, which was indicated by the president’s order,” he said.

President Vladimir Putin said earlier on June 17 that Russia has to at least halve its non-oil and gas budget deficit over the next five to seven years.

The freeze of spending is the most reasonable option, Ulyukayev said.

(65.4398 rubles – U.S. $1)

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