In Russia’s 2024 budget, all unprotected spending items should be reduced by 10% and the money released should be redistributed. Finance Minister Anton Siluanov made such a proposal at a meeting of the government commission on budget estimates on June 29. informs Vedomosti newspaper citing sources.
According to sources, those attending the meeting mostly reacted negatively to this proposal, but did not discuss the need to cut budget expenditures. Speakers asked departments to independently determine which expenses are of priority and which can be waived.
Siluanov explained that optimization is now needed due to the growing gap between budget revenues and expenditures. According to the Ministry of Finance and the Federal Treasury, in 2023 budget revenues amounted to 9.82 trillion rubles, and expenses – 13.23 trillion. The budget deficit is estimated at 3.41 trillion rubles.
Increasing borrowing was suggested as an alternative at the meeting, but the Central Bank representative strongly opposed such an approach. According to him, in this case, the access of commercial companies to loans will be limited and a bias in favor of the public sector will occur.
A source familiar with the course of the debate noted that as part of the proposal, the Ministry of Finance did not take into account a number of factors – GDP acceleration, income and ruble situation. However, another source close to the government noted that Siluanov provided more recent estimates for socio-economic development compared to the latest officially approved estimate.
Protected budget items (informal status) are traditionally understood as those related to the fulfillment of social obligations, primarily military needs and multiple payments for security. Elements that are not protected include, for example, the national economy, environmental protection and others.
formerly Siluanov said about pessimists and optimists.