Russian Defense Ministry Confirms $1.6Bln Budget Cut in 2017

The Russian defense budget is expected to shrink by six percent or 100 billion rubles (some $1.62 bln) in 2017, Deputy Defense Minister Tatiana Shevtsova said Friday.

MOSCOW (Sputnik) — Shevtsova clarified that in monetary terms the expenditures by the Defense Ministry would be cut by around 100 billion rubles, but would not affect remuneration of servicemen or military retirement pensions.

"According to draft budget for 2017-2019 prepared by the Finance Ministry, the federal expenditures will be reduced by six percent," Shevtsova said.

The Russian Defense Ministry transferred more than 41 billion rubles (about $664 million) to the federal budget this year from sales of illiquid assets and property rent.

"As for the revenues part of the budget, today 99.8 percent of Russian Defense Ministry’s income plan was implemented. We ensured the transfer of over 41 billion rubles to the federal budget profit for the needs of the Russian economy. It is our activity, when we lease something or sell illiquid [assets]," Shevtsova told journalists.

She added that the level of execution of the federal budget in 2016 was expected to reach 99.9 percent.

According to Shevtsova, the Russian Defense Ministry has not misused state funds in the past three years.