| Author (Person) | Fischer, Ewa |
|---|---|
| Publisher | Centre for Eastern Studies (OSW) |
| Series Title | OSW Analyses |
| Series Details | 18.03.15 |
| Publication Date | 18/03/2015 |
| Content Type | Journal | Series | Blog |
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On 16 March 2015 the Russian government submitted a budget revision for 2015 to the State Duma, based on a new macroeconomic forecast prepared by the Ministry of Economic Development which took into account the changing domestic and international conditions (the decline in crude oil prices, the devaluation of the rouble, the sanctions by the West and the Russian counter-sanctions) that brought the Russian economy to the brink of crisis. The spending cuts and budget transfers proposed were not focused on the development and modernisation of the Russian economy, but rather on maintaining the status quo in which defence spending, internal security and social expenditure predominate. The Kremlin moved away from undertaking structural changes and unpopular social reforms (such as pension reform), in fear of a rise in social discontent. However, the adjustment to the budget and the anti-crisis measures proposed by the government (especially those concerning the banking sector) might prove to be inadequate, and further budgetary adjustments might had to be made, especially if GDP declines further than expected. |
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| Source Link | http://www.osw.waw.pl/en/publikacje/analyses/2015-03-18/amendment-to-russian-budget-2015-attempt-to-maintain-status-quo |
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| Countries / Regions | Russia |
