Russia cuts in the budget, "almost like a third world '
Russian economic daily "and Dmosti" referred to the anticipated decline in spending on health and education. Even the defense budget is expected to be hurt, but still remain among the highest in the world relative to GDP. The government aims to cut the budget deficit to 1.2% by 2019
Service Kalkalist
10/31/16, 20:35
Red Mile | Comment article | Print article
Russia plans to cut the state budget transverse hurt health services, education and even defense spending. Moscow aim to make the cut will reduce the budget deficit deepened last two years because of the decline in oil prices and the recession affecting Russia. The government's deficit target is 1.2% in 2019, compared to 3.7% this year. Planned cuts in government spending is about 1% next year, 1.3% in 2018 and 0.33% in 2019.
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According to the report "Hfiinsl Times," the lower house of the Russian parliament - is similar - is expected to oppose cuts in the defense budget in light of the deep military involvement in Syria, Russia and eastern Ukraine.
The reporting was based on a draft provided by the government to parliament on Friday, and considering the fact that significant parts of the Russian defense budget are not visible, you can not know for sure how deep the planned cuts in the defense budget.
Julian Cooper, an expert on the Russian economy from the University of Birmingham, UK, told the Financial Times that "if similar to approve the budget, it is very possible security spending will decline in real terms." Cooper estimated that real defense budget in Russia may drop by 15% by 2019.
In addition, spending on health is expected to meet next year to 466 billion rubles, a decrease of 22% compared to 2016. According to the Higher School of Economics in Moscow, if approved budget cuts, the Russian government expenditures on education and health will be in 2016 to its lowest level relative to GDP since 2006 . Russian economic daily "and Dmosti", quoting the data of the school of Economics, explained that "such a sharp drop in government spending would make Russia nearly a third world country."
The Russian government estimates that GDP will contract this year by 0.6%, after that in 2015 it decreased by 3.7%. Next year the Russian government expects growth of 0.6% in GDP.
Despite the expected cut in the defense budget, defense spending as part of GDP is still considered high by international comparison and was 4.7%. In Israel, by comparison, is about defense expenditures as part of GDP to 5.2% and 3.5% in the US.
Other measures that Russia plans to take to reduce the budget deficit are continuing sale of shares of state energy company Rosneft. But, Deputy Prime Minister of Russia Igor Soblob said last week that the government will not meet the target for 2016 of the sale of 19.5% stake in Rosneft, and the company itself would have to buy the remaining shares in the market to the parliament approves the budget.
http://www.calcalist.co.il/world/articles/0,7340,L-3700746,00.html
trnslated by google
Russian economic daily "and Dmosti" referred to the anticipated decline in spending on health and education. Even the defense budget is expected to be hurt, but still remain among the highest in the world relative to GDP. The government aims to cut the budget deficit to 1.2% by 2019
Service Kalkalist
10/31/16, 20:35
Red Mile | Comment article | Print article
Russia plans to cut the state budget transverse hurt health services, education and even defense spending. Moscow aim to make the cut will reduce the budget deficit deepened last two years because of the decline in oil prices and the recession affecting Russia. The government's deficit target is 1.2% in 2019, compared to 3.7% this year. Planned cuts in government spending is about 1% next year, 1.3% in 2018 and 0.33% in 2019.
Read more Calcalist:
Russian Energy Minister met with his colleagues from the Gulf; "The oil market re-balancing"
Russian Energy Minister: "ready to compete on the Turkish gas market with any other vendor, including Israel"
Putin exceed attack: we are prepared to freeze or reduce oil production
According to the report "Hfiinsl Times," the lower house of the Russian parliament - is similar - is expected to oppose cuts in the defense budget in light of the deep military involvement in Syria, Russia and eastern Ukraine.
The reporting was based on a draft provided by the government to parliament on Friday, and considering the fact that significant parts of the Russian defense budget are not visible, you can not know for sure how deep the planned cuts in the defense budget.
Julian Cooper, an expert on the Russian economy from the University of Birmingham, UK, told the Financial Times that "if similar to approve the budget, it is very possible security spending will decline in real terms." Cooper estimated that real defense budget in Russia may drop by 15% by 2019.
In addition, spending on health is expected to meet next year to 466 billion rubles, a decrease of 22% compared to 2016. According to the Higher School of Economics in Moscow, if approved budget cuts, the Russian government expenditures on education and health will be in 2016 to its lowest level relative to GDP since 2006 . Russian economic daily "and Dmosti", quoting the data of the school of Economics, explained that "such a sharp drop in government spending would make Russia nearly a third world country."
The Russian government estimates that GDP will contract this year by 0.6%, after that in 2015 it decreased by 3.7%. Next year the Russian government expects growth of 0.6% in GDP.
Despite the expected cut in the defense budget, defense spending as part of GDP is still considered high by international comparison and was 4.7%. In Israel, by comparison, is about defense expenditures as part of GDP to 5.2% and 3.5% in the US.
Other measures that Russia plans to take to reduce the budget deficit are continuing sale of shares of state energy company Rosneft. But, Deputy Prime Minister of Russia Igor Soblob said last week that the government will not meet the target for 2016 of the sale of 19.5% stake in Rosneft, and the company itself would have to buy the remaining shares in the market to the parliament approves the budget.
http://www.calcalist.co.il/world/articles/0,7340,L-3700746,00.html
trnslated by google
