Russia empties Reserve Fund, makes priority to defense sector

Arms purchases will not be cut, Russia’s Finance Minister Anton Siluanov said to the members of the State Duma when the 3-years Federal Budget for 2017-2019 was approve last Friday, TASS news agency reports. 

«Spending on defense is one of the priorities, the volume of purchases of arms and military equipment is not reduced despite all the difficulties,» Siluanov said. 

The budget envisages a budget deficit of 3,2% of GDP next year while 2019 will se a 2,1% growth. The deficit will be covered by taking 1,15 trillion rubles ($17 billion) from the Reserve fund and 668 billion rubles ($10 billion from the National Wealth Fund. When emptying $17 billion, the Reserve Fund will be empty by the end of 2017, RT reports. 

Kommersant reports that the defense sector will get 2,8 trillion rubles, one trillion less than the 2016-budget, but still with 17,5% being the second largest post on the federal budget after social spendings 31,3%.

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