The Ministry of Finance has decided on the amount of unnecessary budget expenditures under the sanctions

The Ministry of Finance proposed to redistribute budget expenditures for 2022 in the amount of almost ₽500 billion

The Ministry of Finance submitted proposals on the redistribution of budget expenditures by ₽485.9 billion. We are talking about optimizing spending that became impossible or unnecessary under the sanctions. There are no plans to reduce spending on obligations to citizens

The Ministry of Finance proposed the government to redistribute federal budget expenditures for 2022 in the amount of 485.9 billion rubles. This was reported by the press service of the department in response to a request from RBC. The changes will affect spending, the possibility of using which in the current conditions seems “impossible or inappropriate,” the Finance Ministry said. Exactly what costs are involved, they did not specify.

“Redistribution of funds will minimize the consequences of restrictive measures and ensure financing of the primary budget expenditures,” the Ministry of Finance said.

The department emphasized that the planned expenditures of the federal treasury on such public obligations as, for example, wages and accruals on wage payments (speech on insurance premiums and benefits paid to full-time employees at the expense of the Social Insurance Fund), as well as subsidies and subventions to the budgets of the regions are not planned to be reduced.

The authorities have already announced an increase in some of the primary budget expenditures. Thus, President Vladimir Putin announced an unscheduled increase in all social benefits, pensions, salaries for state employees, the minimum wage and the living wage (specific parameters were not named). In addition, payments to low-income families with children from 8 to 16 years old were announced, the costs of which will amount to 455 billion rubles.

Deputy Prime Minister – Head of the Government Staff Dmitry Grigorenko instructed the Ministry of Finance to submit concrete proposals to the government on optimizing budget expenditures under the sanctions. The text of the order stated that it was necessary to redistribute 10% of spending without taking into account public regulatory obligations (PNO).