The ongoing aggressive war against Ukraine is still causing major financial problems in Russia. In order to have more money available for the army, the aggressor is now cutting back on social spending. This affects, for example, veterans and families with children.
According to a media report, the Russian government wants to respond to budget gaps with cuts. Finance Minister Anton Siluanov has proposed a 10 percent cut in so-called unprotected spending for 2024, the Vedomosti daily reported Tuesday, citing two pro-government insiders.
This area includes items that report directly to the president and government, such as benefits for veterans and families with children.
Accrued deficit of $42 billion
This move would free up money for other areas, such as the military and national security. According to official figures, a deficit of 42 billion dollars (38.54 billion euros) arose between January and May. Higher new debt or higher taxes have been rejected as an alternative to the cuts now under discussion, according to the newspaper.
With revenues from energy exports dwindling due to Western sanctions and expenditures to finance the war in Ukraine rising sharply, the budget deficit is already 17 percent higher than planned for the whole of 2023. Defense spending rose in January alone and February by 282 percent.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
