The Russian government is working on a plan to reduce all non-essential and “non-sensitive” budget expenditures by 10%, Reuters reported, citing sources.
One of the agency’s interlocutors said: “The Ministry of Finance informed the departments that distribute budget funds of the need to reduce expenditures. They are now discussing what exactly should be reduced.” Some sources talk about a 10 percent reduction, while others say that the size of the reduction has not yet been approved.
The ministry itself confirmed to reporters that it was discussing measures to “prioritize budget expenditures” with other ministries. The Finance Ministry said the cuts would not affect military and social spending. According to anonymous Reuters interviewers, social benefits and salaries of public sector employees will also not be affected by the cuts.
One of the agency sources noted, “This is always done by optimizing non-essential expenditures. Some new projects, for example, building or repairing roads, will be suspended.”
The article stated that the government intends to direct part of the released funds to the National Welfare Fund to avoid its possible depletion.
The final decision on the reduction plan will depend on the price of oil, which will be determined against the backdrop of the war between Israel, the United States, and Iran. One Reuters source said the current budget situation requires spending cuts regardless of short-term fluctuations in oil prices.
father He plans Government for 2026, the budget deficit will be reduced to 3.8 trillion rubles, and in 2027 it will be 3.2 trillion rubles. The deficit will be covered using National Welfare Fund funds, external and internal borrowing, as well as tax increases.
In the first two months, the Russian budget collected only 826 billion rubles in oil and gas revenues, 47% less than the previous year. He writes The bell. The deficit reached 335 billion rubles.
The Russian budget is under pressure, including due to declining oil and gas revenues in the Russian Federation. They are affected by several factors – falling oil prices, increased supply of raw materials around the world, a strong ruble and sanctions.
Against the backdrop of the war in the Middle East, Russia may benefit from increased oil and gas revenues as a result of rising prices and the redirection of China and India towards Russian energy resources.