Government approves cuts in arms costs and salaries to officials

Photo of author

By admin

The Russian government approved cuts in weapons spending and salaries for officials. The approved draft federal budget for 2021-2023 provides for the optimization of “unprotected” items of expenditure by 10% and a reduction in the state armaments program by 5%, said Finance Minister Anton Siluanov on September 16.

According to him, another measure to balance the budget deficit will be the refusal of the annual indexation of salaries of officials next year. So, according to data from the draft state budget, due to the coronavirus pandemic and the fall in the oil market, the budget deficit this year will be 4.4% of GDP.

In total, the authorities plan to save about 927 billion rubles in 2021, and 970 billion in 2022. Thus, by 2023, the budget deficit will decrease to 1.1%.

“Without optimization and reductions, we would not have reached general balanced principles of budgetary policy in 2022,” RBC quotes Siluanova.

The publication notes that the optimization will not affect the allocation of funds to the regions, the cost of state social obligations and servicing the state debt.

Earlier on September 16, it became known that the Ministry of Finance proposed to increase the excise rate on cigarettes, tobacco products and electronic cigarettes by 20% in 2021. It is expected that the rate increase will lead to an increase in retail prices by an average of at least 20 rubles. per pack, as well as budget replenishment.

Leave a Comment