UPDATE 2: Minister: Russian authorities to freeze budget spending

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VYRUBOVO VILLAGE, Moscow Region/MOSCOW, Jul 5 (PRIME) -- A government commission has generally supported a freeze of budget spending at 15.78 trillion rubles for 2017–2019, Economic Development Minister Alexei Ulyukayev told reporters on Tuesday.

“Nothing was approved at a meeting of the budget commission, it will be approved at a government meeting on Thursday,” Ulyukayev said.

“Yes,” he said, when asked whether a proposal to freeze spending at 15.78 trillion rubles has been supported.

Presidential spokesman Dmitry Peskov said that the Kremlin believes that budget expenses must be cut, but it is premature to discuss parameters.

“The government has started discussing the issue of the budget, budgeting has started, it is a difficult process. Both presidential administration and the government agree with the general idea that of course a range of budget items must be optimized and budget expenses must be cut in order to adjust to the current economic conditions,” Peskov said.

“But I believe that any individual parameters, cuts, which were considered yesterday during a meeting, should not be discussed now. Because it is a multistep process.”

Business daily Vedomosti reported citing sources that a Russian government meeting chaired by Prime Minister Dmitry Medvedev has approved the Finance Ministry’s proposal to freeze budget spending in nominal terms for three years.

The Finance Ministry earlier proposed to freeze budget spending at 15.78 trillion rubles per year in 2017–2019. The proposal was on the whole approved, a participant of the meeting said.

Medvedev’s spokeswoman Natalya Timakova said that no decisions have been made yet.

(63.6844 rubles – U.S. $1)

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