Putin Orders 2015-2017 Spending Cuts, … Sparing Outlays On Defense And National Security

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Putin Orders 2015-2017 Spending Cuts, Sparing Defense Outlays (Bloomberg, Dec 5, 2014):

President Vladimir Putin ordered the government to cut budget spending in 2015-2017 while sparing outlays on defense and national security.

Expenditures must be lowered by at least 5 percent a year in real terms by reducing inefficient spending, according to a statement on the Kremlin’s website today. He also ordered the government to introduce a three-year supervisory “holiday” for small businesses.

The instructions elaborate on policies outlined yesterday in an annual address to lawmakers and top officials, according to the statement.

The economy of the world’s biggest exporter is on the brink of recession after oil prices plunged and sanctions imposed by the U.S. and its allies over the conflict in Ukraine stoked capital outflows and undermined the ruble. Gross domestic product may shrink 0.8 percent next year, compared with an earlier estimate of 1.2 percent growth, according to the Economy Ministry.

2 thoughts on “Putin Orders 2015-2017 Spending Cuts, … Sparing Outlays On Defense And National Security

  1. I think we will wait and see. The people are behind Putin, unlike Obama, and giving a holiday to small business gives them a chance to grow. Russian people are used to doing without, and to become a great power again, they will do what they have to do…….unlike Americans, they know how to do without.

    I think a nation’s real strength is in its people, and if that is true, Russia will persevere. Having Putin at the helm also helps, along with the sister economy Russia and China have built………….leaving the dollar out.

    This is not a disaster, this is just part of the struggle……and they will be okay.

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