Budget cuts in Russia not to apply to defense, agrarian sector, preparations for 2018 FIFA World Cup

The government’s amendments to the federal budget 2015 envisage a 10% reduction in allocations for the main budget holders, but the reduction will not apply to national defense, security, agriculture and a number of other sectors, the Russian government’s website reports. 

“The bill envisages a 10% reduction in the federal budget expenses approved by the Law on Budget for the main budget holders,” the cabinet says. This provision will not concern the allocations for public regulatory obligations, transfers to the budgets of the state non-budgetary funds of the Russian Federation, national defense and national security, population drug coverage, state support to agricultural industry, construction (reconstruction) of the stadiums to be built by the 2018 FIFA World Cup. Nor will it apply to the public services on implementation of the government-accredited educational programs on higher vocational education.    

According to the cabinet, “the bill aims to ensure macroeconomic stability, long-term budget balance and budget system stability.”