The Ministry of Finance ruled out the reduction of spending on social benefits and defense

A 10% reduction in budget expenditures will not lead to a reduction in spending on social benefits and defense. About it informed Russian Finance Minister Anton Siluanov in an interview with Argumenty i Fakty newspaper.

“First of all, these are pensions, salaries, benefits, that is, obligations to citizens. Naturally, the costs necessary for the front, for victory, will not fall under the frontal reduction. These budget expenditure items are classified as protected,” he said. Siluanov explained that the frontal reduction means “a uniform reduction in spending across all ministries and departments.” At the same time, he added that the costs of fulfilling obligations to citizens in this case not only do not decrease, but also increase.

According to Siluanov, social obligations include not only pensions, salaries and benefits, but also “children’s payments, assistance to the regions to support people.” He clarified that the volume of the “children’s budget” will continue to grow, now it is about 2.5 trillion rubles. Siluanov also ruled out the possibility of reducing the cost of supporting families with children in the next two to three years.

At the end of June, the Ministry of Finance presented an initiative for a “frontal reduction” in 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%. According to the current budget law, revenues for this year are planned in the amount of 26.1 trillion rubles, expenses – a little more than 29 trillion, thus, the deficit is expected at the level of 2.9 trillion, or 2% of GDP. Borrowings in the domestic market should become the main sources of its coverage. At the same time, this year, to ensure a balanced budget, it is possible to use the funds of the National Wealth Fund in the amount of 2.9 trillion rubles. According to the Ministry of Finance, in the first half of 2023, the budget deficit amounted to 2.595 trillion rubles. At the same time, June was the first month of this year when a budget surplus of 800 billion rubles was recorded. (+29.8% yoy). Since the beginning of the year, treasury revenues amounted to 12.381 trillion rubles, demonstrating a decline of 12% compared to the same period last year. Expenses increased by 19% to 14.976 trillion rubles.