Medvedev: Russian budget in 2016 will be reduced – BBC Russian

Image copyright RIA Novosti

Image caption Medvedev did not rule out a further decline in oil prices

Russian Prime Minister Dmitry Medvedev instructed ministries and departments to prepare a plan to reduce budget expenditures and the number of the state apparatus.

“We will look, what costs should be podsokratit, and now, unfortunately, greatly podsokratit, and not, as we have done until recently. [solved] by which projects we will be forced to abandon or postpone to a later date “, – Medvedev said at a meeting on implementation of the budget 2016.

Earlier media reported that Russia’s budget spending in 2016 will have to reduce by 10%. Ministry had until January 15 to submit a plan to reduce costs. If they failed to do so, the Ministry of Finance forced reduce costs, the newspaper “Vedomosti”, with reference to its sources. On a similar cost reductions reported and the agency “Reuters”.

Medvedev said Friday that the costs primarily will be reduced due to inefficient spending and certain projects and social obligations the government will try to accomplish. However, cost reductions, according to the prime minister, will be essential.

Also, Medvedev promised to continue to support the car industry, transport machinery and light industry, which in the future may show significant growth.

Summary the reason is to reduce costs in a significant fall in oil prices. The budget for this year is calculated from the price of 50 dollars per barrel.

The fall in prices is creating serious risks for the implementation of the budget, said Medvedev. Moreover, prices may continue to fall against the backdrop of the entry of new players such as Iran.

According to the government, one of the ways to increase budget revenues could be privatized.