Russia’s Ministry of Finance proposes to halve the funding of Crimea

The Ministry of Finance of the Russian Federation proposes to tie up the budget during three years at 15.78 trillion rubles per year.

This is reported by “Vedomosti” with reference to the proposal of the Ministry on the State programs financing and the basic spending of the Russian budget for 2017-2019.

The spending, proposed to be fixed for a three-year period, is less, than the specified one in 2016 (16.25 trillion rubles). “This is the risk-free level of spending that we can afford in the current situation, taking into account all the risks,” said a representative of the Ministry.

In this case the inflation-adjusted spending of the federal budget will be reduced during the next three years about by 20%, comparing with 2016.

Spending for 36 of 42 State programs (they form about half of the budget) are intended to be reduced. Maximum reduction in funding is foreseen for the State physical education and Sport development program (more than by half during the next three years) and the State program of socio-economic development of the Far East and the Baikal region — 20 times. The funding of socio-economic development of the annexed Crimea has been halved too: from149.3 billion rubles in 2016 to 65.98 billion rubles in 2019.

Spending for the closed part of the State programs (mostly the military spending) is down by 15% during the next three years too.

Nominal growth of spending is foreseen for public finances management, economic and industry development.

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