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Medvedev chaired a government meeting on Thursday to discuss the federal budget parameters and state program financing until 2017.
“This scenario (of Russia’s social and economic development) unfortunately envisages a general economic deterioration and slower economic growth this year. Then, the growth is expected to accelerate gradually to 2% next year and to over 3% in 2017,” Medvedev said.The 2015-2017 federal budget will set aside over 2.7 trillion rubles ($78 billion) for the payment of wages and salaries, the premier said, adding the government’s social obligations were a priority in the forthcoming budget period.
More than a half of federal budget funds are spent through the mechanism of state programs. In 2015, the government intends to implement 46 targeted state programs to the amount of over 1 trillion rubles (about $30 billion) in budget financing, the premier said.
The same budget financing principle will now be used by regional and local governments, including Russia’s two new constituent entities - the Republic of Crimea and the city of Sevastopol, the premier said.