Russia’s 2024 budget discussion featured a proposal from Finance Minister Anton Siluanov to cut all unprotected spending items by 10% and to redistribute the freed funds. The suggestion emerged during a government commission on budget estimates meeting on June 29, with Vedomosti’s sources providing the account.
Several attendees reportedly reacted with skepticism to the plan, yet there was little debate about the need to reduce overall budget outlays. Participants urged government departments to assess which expenses are essential and which could be deferred or eliminated, effectively shifting decision-making to line ministries.
Siluanov framed the idea as a necessary step to address a widening gap between budget receipts and expenditures. Official figures from the Ministry of Finance and the Federal Treasury show that in 2023 the budget brought in about 9.82 trillion rubles in revenues while spending reached roughly 13.23 trillion rubles, yielding a deficit near 3.41 trillion rubles.
During the same discussion, raising additional borrowing was floated as an alternative, but a representative of the Central Bank opposed this route. The bank official argued that more borrowing could tighten credit access for private companies and tilt the financial balance toward the public sector.
A participant familiar with the debate noted that several factors were not integrated into the proposal, including GDP growth trajectories, income dynamics, and the current ruble situation. Another insider, however, suggested that Siluanov cited more up-to-date socio-economic projections than those in the most recent officially approved estimate.
Budget items that have an informal protected status are typically linked to social obligations, especially military needs and recurring security payments. Items not usually protected commonly include areas such as the national economy and environmental protection, among others.
Siluanov previously referred to pessimists and optimists in the context of these budget discussions, underscoring the tension between cautious forecasting and more expansive fiscal plans.