ALEXEY VEDEV, ALEXANDER DERYUGIN: “THERE ARE PLANS TO CUT PROGRAM OF NATIONAL PROJECTS BY RUB 600 BILLION”
Alexey Vedev, Head of Financial Studies Department of the Gaidar Institute, and Alexander Deryugin, Researcher, the Budget Policy Department, commented to “Izvestia” on reduction in the costs of RF federal budget aimed at implementation of national projects.
There are plans to cut expenses on national projects almost by RUB 600 billion in the next 2 years.
The most sizable reduction in funding is planned for “Demography”, the “Comprehensive Plan for modernization and expansion of trunk infrastructure” and “Housing and urban environment” for 2021-2022 by RUB 158, 144 and 80 billion respectively. According to Anton Siluyanov, Minister of Finance, "reduction of the initially planned spending was necessary to allocate funds for unforeseen expenses, i.e. anti-crisis measures and combat against coronavirus."
According to Alexey Vedev, “RUB 600 billion will not have a significant impact on the implementation of national projects, as about RUB 3 trillion is spent on their realization annually.”
“Cutting budgets for national projects was predicted: we expect tough financial situation in the following three years, therefore, it is not surprising that money is withdrawn from less priority areas”, the expert believes.
“When national projects just started, no one could have imagined that a pandemic would begin. Now, it is critical to urgently respond to its consequences, supporting the economy and the disadvantaged social strata. It is precisely that the saved RUB 600 billion will be targeted to anti-crisis measures. However, the government does not reject national projects, and all relevant tasks will be fulfilled, but deadlines will be shifted "to the right". By all means, such a delay cannot be a positive factor, however, it is a justified measure in the current situation”, Alexander Deryugin noted.
The most sizable reduction in funding is planned for “Demography”, the “Comprehensive Plan for modernization and expansion of trunk infrastructure” and “Housing and urban environment” for 2021-2022 by RUB 158, 144 and 80 billion respectively. According to Anton Siluyanov, Minister of Finance, "reduction of the initially planned spending was necessary to allocate funds for unforeseen expenses, i.e. anti-crisis measures and combat against coronavirus."
According to Alexey Vedev, “RUB 600 billion will not have a significant impact on the implementation of national projects, as about RUB 3 trillion is spent on their realization annually.”
“Cutting budgets for national projects was predicted: we expect tough financial situation in the following three years, therefore, it is not surprising that money is withdrawn from less priority areas”, the expert believes.
“When national projects just started, no one could have imagined that a pandemic would begin. Now, it is critical to urgently respond to its consequences, supporting the economy and the disadvantaged social strata. It is precisely that the saved RUB 600 billion will be targeted to anti-crisis measures. However, the government does not reject national projects, and all relevant tasks will be fulfilled, but deadlines will be shifted "to the right". By all means, such a delay cannot be a positive factor, however, it is a justified measure in the current situation”, Alexander Deryugin noted.