Tag Archive for Budget

Finance Ministry Eyes 10% Cuts to Russia’s State Spending as Economic Outlook Worsens

Kremlin and Saint Basil's File Photo

(Moscow Times – themoscowtimes.com – October 28, 2014) With sanctions, oil price falls and the ruble devaluation making Russia’s official growth forecasts look increasingly overconfident, the Finance Ministry will draw up contingency measures to shave 10 percent off state spending in 2016 and 2017, business daily Vedomosti reported, citing undisclosed government sources. Such a drastic

Oil drops below $80, implications for Russian budget

Oil Well file photo

(Business New Europe – bne.eu – October 28, 2014) The price of a barrel of Texan light dropped lower than $80 for the first time in two years, but Russia’s economy minister has retained its forecast for the next three years of the oil price remaining within the corridor of $90-$110, according to Interfax. “It is not

Finance Minister: Russia Needs Backup Budget For Worst-Case Scenario

Anton Siluanov file photo

(Moscow Times – themoscowtimes.com – Delphine d’Amora – October 24, 2014) Russia must create a contingency budget to counter the threat that Western sanctions, economic stagnation and low oil prices will dash the country’s hopes of restoring growth in the near term, Finance Minister Anton Siluanov said Friday. “A budget cannot constantly have expenses that

Back-of-envelope estimate of cost to Russia of Ukraine crisis is $100 billion in 2014

Ukraine Map and Flag

(Business New Europe – bne.eu – Timothy Ash of Standard Bank – October 15, 2014) Russia’s foreign minister, Sergey Lavrov, this week estimated that the crisis in Ukraine would likely cost the German economy €40bn this year, and a further €50bn in 2015 – presumably through lost exports, and a broader disruption to the German

Russian Defense Budget to Hit Record $81 Billion in 2015

Russian Nuclear Submarine file photo

(Moscow Times – themoscowtimes.com – October 16, 2014) Russia’s national defense budget for 2015 will reach a record 3.3 trillion rubles ($81 billion), or 4.2 percent of its national GDP, the head of the State Duma’s defense committee, Admiral Vladimir Komoyedov, was quoted as saying by the Interfax news agency on Thursday. The 2015 budget

Putin Aloof as Russia’s Economic Troubles Close In

File Photo of Vladimir Putin Seated at Desk

(Moscow Times editorial – themoscowtimes.com – October 8, 2014) Official documents published Monday show the Kremlin has scrapped the president’s annual budget address. President Vladimir Putin’s spokesman Dmitry Peskov told TASS that the set piece speech would, from now on, be folded into the state-of-the-union address, usually given in December. While Putin floated the idea

Record fall in oil prices threatens Russian budget

Oil Well file photo

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – October 7, 2014) The price of Brent oil has tumbled to $92.2 a barrel, placing the Russian federal budget in jeopardy. Russian analysts believe that the decrease in oil prices is related to demonstrations in Hong Kong, the strengthening of the dollar, as well

RIA Novosti: Putin: Russia Has Reserves to Implement Budget Plans Regardless of Global Trends

File Photo of Cash, Coins, Line Graph

NOVO OGARYOVO (outside Moscow), October 3 (RIA Novosti) – Russia has enough reserves to implement all the tasks under the state budget regardless of global political and economic trends, Russian President Vladimir Putin said Friday. “We certainly have reserves to resolve the issues that could arise as a result of developments of the situation in

Russia Reduces Domestic Borrowing Plan Seeing Budget Surplus

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Vladimir Kuznetsov – May 19, 2014) Russia reduced its 2014 domestic borrowing plan by 46 percent as the world’s largest energy exporter expects to turn a fiscal surplus, Finance Minister Anton Siluanov said. The government lowered the fundraising target to 435 billion rubles ($12.6 billion) from 808 billion rubles, Siluanov told

Budget Figures Show Putin has Been Preparing for War for Four Years, Nemtsov Says

File Photo of Russian Tanks in Military Parade

(Window on Eurasia – Paul Goble – Staunton, May 12, 2014) A government’s priorities and plans are most clearly shown in its budget, and over the last four years, the budgets Vladimir Putin has proposed and imposed are those of a leader preparing for war rather than someone concerned about the needs of the Russian

Weak ruble could push Russian budget into surplus – report

File Photo of Cash, Coins, Line Graph

(RIA Novosti – February 25, 2014) A weakening ruble could boost Russia’s federal income by $28 billion this year, pushing the treasury into surplus, according to a report published Tuesday by Moscow’s Higher School of Economics. The ruble has fallen by more than 7.5 percent since the beginning of the year against the dollar-euro basket

Russian financial watchdog says regions lack funds to implement Putin’s orders

Map of Russia

(RIA Novosti -January 29, 2014) The Russian regions do not have sufficient funds to implement the May [2012] orders of Russian President [Vladimir Putin], the Audit Chamber has said. The watchdog has come to this conclusion as a result of the monitoring of the regional situation. The most acute situation has emerged in connection with

Putin, Facing Sputtering Economy, Declares a Tax Crackdown

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Gabrielle Tétrault-Farber – December 13, 2013) President Vladimir Putin capped off a year of aggressively seeking to fill the government’s coffers by announcing Thursday that the government would begin to tax Russian offshore companies and no longer support foreign-registered enterprises. Praising Russia’s improving business environment, Putin also used his annual

Putin Stays Firm on Fulfilling Promises

File Photo of Vladimir Putin at Valdai Club 2013 Meeting, Adapted from Screenshot of Valdai Club Video at youtube.com

(Moscow Times – themoscowtimes.com – Anatoly Medetsky – December 6, 2013) President Vladimir Putin on Thursday said the government would have to improve the country’s economic performance in order to fulfill his campaign promises. He also complained that his tap water was sometimes brown from rusty pipes. Putin’s decrees from May last year, which seek

RIA Novosti: Russia Expects ‘Big Problems’ for Budget After 2016 – Finance Minister Siluanov

File Photo of Cash, Coins, Line Graph

MOSCOW, December 6 (RIA Novosti) ­ Russia’s Finance Ministry predicted serious difficulties Friday for the budget in 2016 and 2017 as slowing economic growth means there will be insufficient funds available to honor spending commitments. Short term and long term growth forecasts for the Russian economy have been cut repeatedly this year, with officials warning

Interfax: Putin rules out more taxes on ordinary citizens to resolve business problems

Cash, Calculator, Pen

NOVO-OGARYOVO. Dec 4 (Interfax) – President Vladimir Putin ruled out the idea of boosting the tax burden on ordinary citizens in order to resolve problems facing entrepreneurs. The president criticized a proposal to collect additional budget funds to create infrastructure for housing construction, for example, by introducing an excise tax on soda pop. “Don’t do

Interfax: Russia’s defense spending to amount to 2.3 trillion rubles in 2013 – Putin

Russian Nuclear Submarine file photo

SOCHI. Nov 29 (Interfax) – The Russian state is spending huge money on modernizing its armed forces, and therefore all goals that have been set must be attained, Russian President Vladimir Putin said. “The overall volume of the [Defense] Ministry budget in 2003 was 600 billion rubles, and this year, following the last adjustment of

Kremlin struggling to get a hold on graft

Cropped File Photo of Two Men in Business Suits Shaking Hands and Passing Cash

(Business New Europe – bne.eu – Ben Aris in Moscow – November 19, 2013) Russian President Vladimir Putin is frustrated with the slow progress in his anti-corruption drive and struggling to take charge of the situation. Having ignored the problem for over a decade, the president has been forced to finally deal with the problem

Most approved government programs inconsistent with Russia’s budget – auditor

Tatiana Golikova file photo

MOSCOW. Nov 14 (Interfax) – The parameters of 40 Russian government programs approved in 2012-2013 are inconsistent with the budget plan for 2014-2016, the chairman of the Audit Chamber, Tatyana Golikova said in an interview published by Rossiyskaya Gazeta on Thursday. “This refers to 40 state programs approved by the government in 2012-2013, which were

Shoigu Opts for Mystical Defense Plans (Part One); Russian defense expenditures prove too low to maintain sufficient military training levels

File Photo of Russian Tanks in Military Parade

(Eurasia Daily Monitor: Volume 10, Issue 193 – Jamestown Foundation – jamestown.org – Roger McDermott – October 29, 2013) As the anniversary approaches in November 2013, marking one year since President Vladimir Putin sacked Anatoly Serdyukov and appointed Sergei Shoigu as Russia’s defense minister, evidence is mounting to indicate that the change may not herald

New head promises changes to Audit Chamber

Tatiana Golikova file photo

(Interfax – MOSCOW, October 17, 2013) New Audit Chamber Chairman Tatiana Golikova says she plans to use her experience as a financier when planning changes to the work of the chamber. “I think there will be changes. If only because I have been professionally engaged in finance all my life and I have my own

RIA Novosti: Russian Government to Cull Federal Officials

File Photo of Dmitry Medvedev Before Gold Flag with Elaborate Design

(RIA Novosti – MOSCOW, October 13, 2013) ­ Russian Prime Minister Dmitry Medvedev has ordered a cull of federal officials in the regions ahead of an upcoming three-year state budget crunch. Medvedev did not give any estimates for the number of officials facing the sack in 2014-2015 in his order, published on the government’s website

RIA Novosti: Quarter of Russia’s Budget to Become Classified by 2016

Stylized Artis Depiction of Shadowy Figures in Dark Coats and Dark Hats, One Carrying a Briefcase

(RIA Novosti – MOSCOW, October 14, 2013) ­ Almost one-quarter of government spending in Russia is to become classified within the next three years, according to findings by a Moscow research institute that will raise concerns of decreasing economic transparency in a country already plagued by corruption. Vedomosti business daily said in a report Monday,

Shuvalov: Russia to suspend megaprojects, develop transport infrastructure

Igor Shuvalov file photo

(Interfax – VLADIVOSTOK, September 28, 2013) – Russia will take a break in megaprojects under the current complex circumstances but will continue to develop its transport infrastructure. “There will be no such megaprojects as the Sochi Games in 2014 but there will be other very important projects, such as transport infrastructure for greater passenger and

Russia Gets Poor Marks for Wellbeing of its Elderly – Report

Two Babushkas file photo

(RIA Novosti – Karin Zeitvogel – WASHINGTON, September 30, 2013) Russia earns low marks on a global index that rates countries by the quality of life and wellbeing of their old folk, ranking 78th out of 91 countries in the first-ever Global AgeWatch Index released Monday. The index, which lists Sweden at number one and

Russia to have austere 2014 budget – Medvedev

Dmitry Medvedev file photo

(Interfax – MOSCOW, September 23, 2013) The 2014 budget that is being drafted by Russia’s government is the most austere in years, according to Prime Minister Dmitry Medvedev. “It will be a difficult budget, the most difficult in recent years. It aims to ensure the stable development of Russia in a deteriorating global economic environment,”

Russian premier admits spending on army comes before welfare

File Photo of Russian Tanks in Military Parade

(Interfax – September 23, 2013) Russian Prime Minister Dmitriy Medvedev has acknowledged that security and the armed forces are a priority for state spending and social needs will have to take their place in the queue, Interfax news agency reported on 23 September. “I hope that after we complete the reorganization and restructuring of the

Russia could cut, redistribute some budget expenditure in next three years

Cash, Calculator, Pen

(Interfax – MOSCOW/KAZAN, September 17, 2013) Russia could cut budget expenditure by more than 1.2 trillion rubles in the next three years. Some of this as well as money saved by other means may be redistributed or used for other priorities. Cutting and maneuvering The Kommersant newspaper said the Russian Finance Ministry was proposing to

346 Reports Later, Stepashin Steps Down from Audit Chamber

Kremlin and St. Basil's

(Moscow Times – themoscowtimes.com – Alexander Panin – September 11, 2013) Audit Chamber chief Sergei Stepashin, who is being replaced by presidential aide Tatyana Golikova, said goodbye to his colleagues at the chamber’s headquarters in downtown Moscow on Tuesday, to a round of applause and the patriotic marching tune “Farewell of Slavyanka.” Stepashin, who earlier

Russia’s call: Austerity versus spending

Kremlin and St. Basil's

(Russia Beyond the Headlines – rbth.ru – Pavel Vasiliadi, Analyst at the UFS Investment Company, special to RBTH – September 10, 2013) Economist Pavel Vasiliadi describes how Russia has more options than most of its G20 peers in choosing to either save or spend its way out of the crisis. In the debate on international

Putin Nominates Aide to Head Russia’s Audit Chamber

Kremlin and Moscow Environs Aerial View

(RIA Novosti – MOSCOW, September 9, 2013) ­ Presidential aide and former health minister Tatyana Golikova was nominated by President Vladimir Putin Monday to head Russia’s Audit Chamber, the Kremlin said. Golikova was selected by Putin from a pool of three candidates for the position put forward by a State Duma commission that also included

Navalny Backs Economic Amnesty, Windfall Tax on Privatized Assets

Alexei Navalny file photo

(Moscow Times – themoscowtimes.com – Vladimir Goryachev and Oleg Sukhov – September 3, 2013) Mayoral candidate Alexei Navalny has voiced support for an economic amnesty and a windfall tax on some privatized assets at a high-profile meeting with businessmen and top executives, Vedomosti reported. The event was the first public meeting with entrepreneurs during Navalny’s

More than 70% of Large State Contracts Awarded in Legal “Gray Area”

Cash, Calculator, Pen

(Moscow Times – themoscowtimes.com – August 15, 2013) The Audit Chamber has found gross violations in the processes through which authorities award state orders of 1 billion rubles ($30 million) or more. More than 70 percent of the contracts, as calculated by their quantity and value, were finalized in a “gray area,” the Chamber said

Russia puts spending on guns ahead schools

File Photo of Russian Tanks in Military Parade

(Business New Europe – bne.eu – MOSCOW BLOG – July 9, 2013) The Russian government has just approved the next three-year budget that runs to 2016 that has cut spending on education and health in favour of boosting it on reequipping the armed forces. Relations between Russia and the west are probably at their lowest

Golikova Odds-on to Head Audit Chamber

Kremlin and St. Basil's

(Moscow Times – themoscowtimes.com – July 5, 2013) Former Health and Social Development Minister Tatyana Golikova could be appointed head of the Audit Chamber as early as Friday by President Vladimir Putin, several government sources said, Vedomosti reported Thursday. Golikova, currently a presidential aide, was tipped to replace Sergei Stepashin as soon as a new

Putin: Defense programs must not be heavy burden on economy, social sector

Russian Nuclear Submarine file photo

(Interfax – MOSCOW, July 5, 2013) The development of Russia’s armed forces should not deprive the national economy and public sector of financial resources, Russian President Vladimir Putin said. “The defense programs should be reasonable and should not be a heavy burden on the country’s economy and public sector,” Putin said at a Russian Security

Duma Makes Nominations For Audit Chamber Chief

Russian Duma Building

(Moscow Times – themoscowtimes.com – Guennadi Moukine – July 2, 2013) The State Duma has approved the nominations of Sergei Stepashin, Tatyana Golikova and Andrei Makarov as candidates to head the Audit Chamber, leaving it up to President Vladimir Putin to choose one of them or award the position to somebody else by October 1,

Russia Scales Down Asset Sales as Medvedev Bemoans Delays

Empty Boardroom

(Bloomberg – bloomberg.com – Scott Rose & Olga Tanas – June 27, 2013) Russia will raise a third less than previously estimated from asset sales in the next three years, downsizing the program as Prime Minister Dmitry Medvedev criticized the lobbying that’s putting a brake on plans. Revenue from asset sales will bring the budget

TRANSCRIPT: Putin answers questions at St Petersburg Economic Forum – Kremlin transcript

File Photo of St. Petersburg Economy Forum Outdoor Banners and Building Facade

(Kremlin.ru – June 21, 2013) Text of report “Answers to questions from St Petersburg International Economic Forum participants, 21 June 2013, St Petersburg” published in English by Russian presidential website on 24 June; subheadings added editorially: Russia’s priorities in G20 MODERATOR (retranslated): Mr President, the St Petersburg International Economic Forum is being held in your

Russian ministry proposes balancing budget in 2014-2016 by cutting transfers, spending

Anton Siluanov file photo

(Interfax – MOSCOW, June 25, 2013) Russia’s Finance Ministry is proposing three maneuvers to balance the federal budget in 2014-2016 – reduce transfers to the Pension Fund of Russia (PFR), cut budget earmarks for government procurements and postpone some spending on the government arms program until after 2016, Finance Minister Anton Siluanov told reporters on

Opposition Lawmakers Slam WTO Effect

WTO Logo

(Moscow Times – themoscowtimes.com – Alexander Bratersky – June 21, 2013) Opposition lawmakers and businessmen said at a panel Thursday that Russia had lost billions of dollars due to cuts in import tariffs after its accession to the World Trade Organization. The panel was attended by groups lobbying the interests of the engineering, agriculture and

Progressive income tax scale in Russia feasible from 2018 – Shuvalov

Igor Shuvalov file photo

(Interfax -ST. PETERSBURG, June 20, 2013) It would be feasible to introduce a progressive income tax scale in Russia in 2018, when the current political cycle ends, First Deputy Prime Minister Igor Shuvalov told reporters on the sidelines of the St Petersburg Economic Forum. “It would probably make sense to make the transition to different

WHO Should Butt Out of Russia’s Cigarette Biz -­ Health Official

No Smoking Symbol

(RIA Novosti – MOSCOW, June 13, 2013) ­ The World Health Organization has no right to dictate to Russia how to develop its tobacco pricing policies, Russia’s chief health inspector said Thursday. The head of the WHO office in Russia, Luigi Migliorini, had earlier expressed disappointment in lower than expected increase rates for tobacco excise

TRANSCRIPT: [Putin] 2014­-2016 Budget Policy Address

File Photo of Cash, Coins, Line Graph

(Kremlin.ru – The Kremlin, Moscow – June 13, 2013) Vladimir Putin announced the signing of the 2014­-2016 Budget Policy Address at a meeting with members of the Government Cabinet, heads of both houses of the Federal Assembly and the Presidential Executive Office. The address outlines the basic budget policy objectives over the next three years.

Putin Says Government Faces Falling Revenues

Cash, Calculator, Pen

(Moscow Times – themoscowtimes.com – Alexander Panin – June 14, 2013) In the coming years, the government will get less revenue than was expected before, and the budget policy for 2014-2016 has to be planned accordingly, President Vladimir Putin said on Thursday while presenting the budget policy to senior government officials and lawmakers. Putin also

Putin expects extra measures stimulating economy from government

File Photo of Cash, Coins, Line Graph

(Interfax – MOSCOW, June 11, 2013) Russian President Vladimir Putin says he expects the government to take extra measures to stimulate the national economy in the near future, but Russia is not going to start a currency emission process. “I hope the Russian government, after our numerous meetings, will propose extra steps to stimulate economic

Audit Chamber believes govt economic forecasts for 2014-2016 too optimistic

File Photo of Cash, Coins, Line Graph

(Interfax – MOSCOW, June 3, 2013) Experts at the Audit Chamber and economists it recruited who work at government, corporate and research institutions are questioning the Russian government’s social and economic scenarios and forecasts for 2014-2016. The social and economic development forecast that the government considered on May 16 was discussed on May 29 at

Medvedev generally pleased with govt’s performance

Dmitry Medvedev file photo

(Interfax – SOCHI, May 19, 2013) Normal macroeconomic indices, the budget rule and privatization deals are the main results of the year that has passed since the government started working, said Prime Minister Dmitry Medvedev. “A year has passed, and it was filled with so many different events. However different opinions may be, the country

Putin Purse Tightening Hobbles Medvedev in Race to Deadline

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Olga Tanas & Irina Reznik – April 29, 2013) President Vladimir Putin rejected calls for fiscal stimulus, limiting Prime Minister Dmitry Medvedev’s options as he races to meet a deadline for submitting a plan to revitalize Russia’s economy. First Deputy Premier Igor Shuvalov said Putin dismissed proposals to aid flagging growth

Russian PM urges ‘spending optimization’ to meet welfare pledges

Dmitry Medvedev file photo

(Interfax – Gorki, April 3, 2013) Russian Prime Minister Dmitriy Medvedev has said the social obligations taken by the state are unconditional and set the task of optimizing spending in this area. “A very considerable sum is provided for these purposes (in the social sphere) in the federal budget this year: over R5,000bn (about 160bn

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