Russia says it will cut social spending to balance budget
Posted On September 20, 2021
Russia is preparing to cut spending on social spending as part of a fiscal consolidation program to balance its books.
The Russian Finance Ministry on Wednesday said in a statement that the government would cut its planned social spending by 3.2 percent in 2020 to 5.8 percent in 2021, and by 1.3 percent in 2022 to 4.3%.
“We are planning to eliminate some social expenditure as well as social benefits, especially in the areas of food, clothing, healthcare, pensions, transportation, education and other social services,” the ministry said in the statement, which was published on its website.
“The government will reduce the social expenditure in the area of pensions by 1 percentage point and will raise the retirement age from 75 to 75.
We are planning the reduction of social benefits and social spending.”
In April, Russia’s central bank cut the Social Security fund by a third and the state pension fund by 15 percent.
The budget for the year ends Sept. 30, 2019.
In a report earlier this year, Russia warned that the economy is on a “strategic path” and that it is hard to stop the deterioration in the outlook unless the country changes its course.