World Economy

Russia Proposes Spending Cuts

Russia Proposes Spending CutsRussia Proposes Spending Cuts

The Russian government has proposed cutting planned spending by 10 percent this year and 5 percent in all categories except military and social expenditures, AP reported. Russia’s economy is expected to decline by 4-5% this year, the first drop since 2009. The anti-crisis plan released on the government’s website on Wednesday lists measures that authorities will take to support the economy battered by lower energy prices, a collapse in the value of the ruble as well as western sanctions. The government says its budget proposal would cut spending by 10% this year and 5% in 2016 and 2017. The plan will not affect military and social spending, which account for 4.2% and 5% of spending, respectively.