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Russian govt proposes spending cuts in view of crisis

People walk past a display of a currency exchange office in St.Petersburg, Russia, Tuesday, Jan. 27, 2015. A day after a top ratings agency cut Russia’s rating to junk level, the government in Moscow on Tuesday announced a plan that will see the economy return to a budget surplus in 2017. Standard & Poor’s downgraded Russia’s rating to BB-plus late on Monday, a non-investment grade, for the first time since 2004, citing a slide in the ruble and weakening revenue from oil exports. The agency said Russia's financial system is weakening, limiting room for maneuver for Russia's Central Bank. (AP Photo/Dmitry Lovetsky)
People walk past a display of a currency exchange office in St.Petersburg, Russia, Tuesday, Jan. 27, 2015. A day after a top ratings agency cut Russia’s rating to junk level, the government in Moscow on Tuesday announced a plan that will see the economy return to a budget surplus in 2017. Standard & Poor’s downgraded Russia’s rating to BB-plus late on Monday, a non-investment grade, for the first time since 2004, citing a slide in the ruble and weakening revenue from oil exports. The agency said Russia's financial system is weakening, limiting room for maneuver for Russia's Central Bank. (AP Photo/Dmitry Lovetsky) People walk past a display of a currency exchange office in St.Petersburg, Russia, Tuesday, Jan. 27, 2015. A day after a top ratings agency cut Russia’s rating to junk level, the government in Moscow on Tuesday announced a plan that will see the economy return to a budget surplus in 2017. Standard & Poor’s downgraded Russia’s rating to BB-plus late on Monday, a non-investment grade, for the first time since 2004, citing a slide in the ruble and weakening revenue from oil exports. The agency said Russia's financial system is weakening, limiting room for maneuver for Russia's Central Bank. (AP Photo/Dmitry Lovetsky)

By Associated Press 1 min read

MOSCOW (AP) – The Russian government has proposed cutting planned spending by 10 percent this year and 5 percent in all categories except military and social expenditures.

Russia’s economy is expected to decline by 4-5 percent this year, the first drop since 2009.

The anti-crisis plan released on the government’s website on Wednesday lists measures that authorities will take to support the economy battered by lower energy prices, a collapse in the value of the ruble as well as Western sanctions.

The government says its budget proposal would cut spending by 10 percent this year and 5 percent in 2016 and 2017. The plan will not affect military and social spending, which account for 4.2 percent and 5 percent of spending, respectively.