Russia freezes public expenditure to 2019

Russia will run out the first of his two sovereign funds, the Reserve Fund, in the course of next year and then begin to tap into the National Welfare Fund to cover the deficit between revenue and expenditure in the state budget.

The Ministry of Finance has in fact made it clear that public spending will be frozen at an altitude of 245 billion a year for three years in dollars, equivalent to a reduction of 20%, but not enough to stop the bleeding. "The committee approved the full freeze",  Alexei Ulyukayev declared to press agency Tass.

In addition, the base of the decisions taken, it must be remembered that this September there will be elections for a new parliament, while in 2018 will be the turn of the presidential, elements that led not to intervene drastically.

According to the "Moscow Times", the next three years will increase the internal debt of four or five times and, in fact, it will make full use of sovereign funds, hoping that the economy and oil prices resume to pull . Here then is that by the end of 2016 the Reserve Fund will remain around $ 15 billion and this will run out in the course of 2017, according to Reuters claims that analyzed the dossier circulated by the ministry.

To this must be added about 12 billion dollars in 2017 and 13 in 2018, in both cases taken from the Fund of National Welfare. At the time this fund into cash about 73 billion dollars.