Arab Today, arab today russia announces new budget cuts amid oil slide
Last Updated : GMT 04:52:20
Arab Today, arab today
Arab Today, arab today

Russia announces new budget cuts amid oil slide

Arab Today, arab today

Arab Today, arab today Russia announces new budget cuts amid oil slide

Russia will cut spending by 10%
Moscow - AFP

Russia will cut its spending by 10 percent this year, the finance minister said Wednesday, as prices for Moscow's key export commodity slumped to new lows.

"We have agreed that ministries and (government) agencies... will present their proposals to the finance ministry for optimising budget expenditure by around ten percent," Finance Minister Anton Siluanov told an economic conference in Moscow, confirming media reports on Tuesday.

"We have to take well thought-out measures on how to bring the budget in accordance with the new realities," he added.

"In the current difficult conditions, we must speak of a very thrifty, strict budget policy, in order not to end up with high deficit levels or a high volume of debt," he said.

Russia's 2016 budget is based on an oil price of $50 a barrel and a deficit of three percent, which President Vladimir Putin has ordered must not be exceeded.

Crude prices on Tuesday dipped below $30 a barrel for the first time in over 12 years.
Siluanov said the oil price would have to rise to $82 to fully balance this year's budget.

Siluanov cautioned against expecting a "price rise (for oil) in the immediate future," while economy minister Alexei Ulyukayev predicted that oil prices would remain low for "a very long time."

While last year's budget deficit was only 2.6 percent, this year is expected to be more difficult.

The government has been forced to dip heavily into its reserves and abandon support for the ruble, which has slid in value.

The economy has also been pummelled by Western sanctions imposed due to Moscow's meddling in Ukraine, as well as Russia's counter-measures which included an embargo on key food imports.

Budget cuts have already affected the interior ministry, which announced layoffs of about 10 percent of its workforce.

If the government fails to initiate austerity measures, "the same thing will happen as in 1998-99, with the public paying through inflation for our failures in correlating the budget with the new reality," warned Siluanov, referring to a previous economic crisis which saw Russia default on its debt.

Annual inflation in 2015 reached 15.5 percent and food prices grew more than 19 percent on average, with fruit and vegetables becoming 29.5 percent more expensive, the state statistics service said this week.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russia announces new budget cuts amid oil slide Arab Today, arab today russia announces new budget cuts amid oil slide

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russia announces new budget cuts amid oil slide Arab Today, arab today russia announces new budget cuts amid oil slide

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Lufthansa chief eyes up to 78

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Rouhani at UN defends Iran nuclear deal

GMT 09:41 2017 Thursday ,21 September

Rouhani at UN defends Iran nuclear deal
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today China lifts 10-year travel ban

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Actress Ream Hhagag prepares for a new film

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:49 2017 Wednesday ,20 September

WHO urges Yemen to accept vaccines

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday