Siluanov explained the need to reduce budget spending by 10%

The need for a “frontal reduction” in 2024 budget expenditures on unprotected items is caused by “financially intensive tasks” that need to be implemented next year. About this in an interview with TASS told Finance Minister Anton Siluanov.

“Next year there are more financially capacious tasks, they need to be provided with resources. Therefore, 10% is not a reduction, but a redistribution, prioritization of expenses for new purposes. We do this every year,” he said.

In total, budget expenditures in the amount of about 29 trillion rubles are planned for 2024. According to Siluanov, only 10% of 4.5 trillion rubles are subject to redistribution, that is, 450 billion rubles will be redistributed. The rest of the funds are classified as “protected” expenses – salaries, pensions, defense spending and transfers to the regions.

Siluanov added that the costs will be reduced for the implementation of those projects that can be postponed to a later time. Ministries and departments will determine for themselves what can be optimized and what cannot.

At the end of June, the Ministry of Finance introduced initiative for a “frontal reduction” of government spending in the 2024 budget, Vedomosti wrote. According to sources, Siluanov, at a meeting of the government commission on budget projections, suggested that departments cut spending by 10%. July 19 Vedomosti source informedthat the government approved the proposal of the Ministry of Finance to reduce budget expenditures in 2024 by 10% on the so-called unprotected items.

July 18 Siluanov explainedthat frontal reduction means “a uniform reduction in spending across all ministries and departments.” He also assured that the reduction in budget spending will not lead to a reduction in spending on social benefits and defense. “These budget expenditure items are classified as protected,” he said. According to him, in the event of a frontal reduction, the costs of fulfilling obligations to citizens not only do not decrease, but even increase.

Later, the press secretary of the President of Russia Dmitry Peskov notedthat budget cuts will not affect the national projects, since their implementation is an “absolute priority”.