Russian Ministry of Finance to Reduce Subsidies to Regional Budgets by 15.5%

Russian business daily Vedomosti reports that the Russian Ministry of Finance plans to reduce subsidies to regional authorities by 15.5% in 2017.  One of the items that will be cut is that aimed at fulfilling President Putin’s executive order from May 2015 to increase the salaries in the public sector.
Other subsidies will be cut as well, such as those related to road construction and maintenance. This might seriously impact the regional authorities, as their sources of revenue are either stagnating or decreasing. In January 2016, only nine regional budgets recorded a surplus, while 79 regions ran a deficit.  In April 2016, consolidated regional and municipal debt in Russia amounted to 2.65 trillion rubles (USD 40.5 billion).
Russian Government decided to freeze the budgetary expenditures at 15.78 trillion rubles (USD 241.3 billion) in 2017. During the last two years, it transferred as much as 1.6 trillion rubles (USD 24.5 billion) to various levels of local government.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s