The Russian government is facing its worst economic crisis in a decade. On Wednesday the country detailed how it intends to cut spending over the next three years in all parts of the economy except military and social programs. Russia’s economy has been battered by lower energy prices, a collapse in the value of the ruble, and Western sanctions over its involvement in Ukraine. Russia’s GDP is expected to decline by 4-5% this year. Faced with a slide in its public finances, the government earlier this month said it would slash spending broadly. Russia foresees spending cuts of 10% this year and 5% over the next two years. The budget proposal, which has yet to be approved by parliament, will not affect military and social spending, which account for 4.2% and 5% of spending, respectively.
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