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The Russian government is reportedly preparing its citizens for a downturn in household income and a subsequent decrease in living standards. This information emerges from a recent report released by the Ukrainian Center for Countering Disinformation, which was disseminated through platforms like Telegram.
During an expanded meeting of the Russian Ministry of Finance, Minister Anton Siluanov acknowledged the challenging economic situation, particularly in the oil market, which has been exacerbated by the ongoing conflict in Ukraine. He stated that the nation must adjust its expenditures to align with new realities.
Siluanov stressed the need for a more efficient use of budgetary resources, indicating that the government would need to reduce its expectations in certain areas to make the most of every ruble allocated.
According to the report, Russia is on track to experience a significant decline in budget revenues due to falling oil prices and the impact of Western sanctions. In March alone, revenues from oil and gas were down by 17%, and projections suggest that this figure could reach a 22% drop by the end of April.
Despite these financial challenges, Russia's military expenditures have seen a substantial increase. In 2024, military spending is expected to total $149 billion, which constitutes approximately 7.1% of the country's GDP, marking a 38% rise compared to 2023 and a doubling since 2015. Military expenditures are projected to account for 19% of total public spending.
The Russian government has indicated that it intends to maintain its financial commitments to military contractors involved in the conflict in Ukraine, as well as continue investing in arms production, despite the anticipated decline in the standard of living for ordinary citizens. The report concluded that the Kremlin shows no intention of ending the war and is instead opting to cut back on spending that would directly benefit its populace.
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