Canadian Manufacturing

Russia finally admits it must revise economic plan

Economic and political alienation means earlier plan to boost government spending by nearly 12 per cent is unrealistic



MOSCOW—Russia’s finance minister has promised to maintain a tight lid on spending as the country faces its worst economic downturn in 15 years.

Anton Siluanov said an earlier plan to boost government spending by nearly 12 per cent this year is unrealistic, and some of the planned expenditures should be cut.

He told an economic forum Jan. 14 that if oil prices average at US$50 a barrel this year, government revenues will drop by around US$45 billion compared to an earlier plan.

The Russian ruble lost about half of its value last year under the combined blow of slumping global prices for oil and Western sanctions over Ukraine. The currency dropped about one per cent in morning trading in Moscow Jan. 14, nearing 66 rubles per American dollar.

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