{"id":151828,"date":"2025-08-20T17:57:23","date_gmt":"2025-08-20T14:57:23","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/151828\/"},"modified":"2025-08-20T17:57:34","modified_gmt":"2025-08-20T14:57:34","slug":"budget-2024-government-cuts-education-healthcare-social-spending","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/151828\/","title":{"rendered":"Budget 2024: government cuts education, healthcare, social spending"},"content":{"rendered":"\n<p><strong>The government has reported a budget surplus for 2024, overturning earlier expectations of a deficit. Revenue exceeded the target by 12 percent, while expenditures were reduced by 2 percent.<\/strong><\/p>\n\n\n\n<figure class=\"block-image block-image-normal\">\n\n    <img decoding=\"async\" width=\"1128\" height=\"752\" src=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com.jpg\" class=\"attachment-full size-full\" alt=\"\" srcset=\"https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com.jpg 1128w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-354x236.jpg 354w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-734x490.jpg 734w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-178x118.jpg 178w, https:\/\/pozirk.online\/wp-content\/uploads\/2024\/05\/finance_1128_freepik-com-768x512.jpg 768w\" sizes=\"(max-width: 1128px) 100vw, 1128px\" \/>\n    <figcaption>\n        \n                    <div class=\"block-image__author\">\n                                <span>(freepik.com)<\/span>\n            <\/div>\n            <\/figcaption>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Budget performance<\/h2>\n\n\n\n<p>The original budget projected revenue of 39.9 billion rubels ($12 billion) and spending of 44.7 billion, leaving a deficit of 4.7 billion. Later, the projected deficit was revised downward to 1.17 billion rubels.<\/p>\n\n\n\n<p>According to the budget implementation report released in June, actual revenue reached 44.6 billion rubels, while spending totaled 43.9 billion. This resulted in a surplus of 0.7 billion rubels. Revenue was 12 percent higher than projected, while expenditures were cut by 2 percent.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/24718356\/embed#?secret=S16Wz9kSBC\" data-secret=\"S16Wz9kSBC\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Revenue growth driven by VAT, excise duties<\/h2>\n\n\n\n<p>Tax revenue exceeded the planned 33.5 billion rubels by 4 billion, with VAT serving as the main driver. The government attributed the increase to stricter tax collection, higher sales, rising wages and inflation.<\/p>\n\n\n\n<p>Customs duties brought in 24 percent more than expected, while excise taxes on fuel and alcohol also surpassed projections. The surge in revenue was further supported by expanded credit, growing trade with Russia and higher salaries. However, much of this \u201cextra revenue\u201d came from inflation, which boosted nominal prices and wages without significantly increasing real economic output.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/24718379\/embed#?secret=tUshYCA7KT\" data-secret=\"tUshYCA7KT\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Spending cuts<\/h2>\n\n\n\n<p>The government reduced spending by 3 percent in 2024, saving about 700 million rubels on state procurement. Debt servicing costs fell by 41 percent (1.5 billion rubels), as payments to \u201cunfriendly countries\u201d were suspended and obligations to Russian creditors rescheduled.<\/p>\n\n\n\n<p>Expenditure cuts also affected key social areas:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Education spending dropped by 3 percent.<\/li>\n\n\n\n<li>Healthcare fell by 1 percent.<\/li>\n\n\n\n<li>Social policy programs were reduced by 2 percent.<\/li>\n<\/ul>\n\n\n\n<p>Defense spending came in 12 percent (442 million rubels) below target. Given the sharp rise in defense allocations over the past few years\u201425 to 50 percent annually\u2014the underspending likely reflects the military\u2019s limited ability to absorb such large budgets.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish\"><div class=\"wp-block-embed__wrapper\">\n<iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" title=\"Interactive or visual content\" src=\"https:\/\/flo.uri.sh\/visualisation\/24718396\/embed#?secret=qCwZb0t0LE\" data-secret=\"qCwZb0t0LE\" frameborder=\"0\" scrolling=\"no\" height=\"575\" width=\"500\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What explains surplus?<\/h2>\n\n\n\n<p>The surplus does not necessarily indicate an improvement in citizens\u2019 welfare. Most of the additional revenue stemmed from inflation, deferred debt payments and fines\u2014not from higher productivity or export growth. Essentially, taxpayers contributed more due to rising prices, excise duties and wage-based taxes, while real purchasing power remained stagnant or even declined.<\/p>\n\n\n\n<p>Last year\u2019s surplus was achieved at the cost of future growth. Businesses reduced investment, households saved less, and resources were diverted from long-term development to short-term survival. This \u201cliving for today\u201d strategy may work temporarily but undermines sustainable economic progress.<\/p>\n\n\n\n<p>In short, the surplus was achieved not through efficiency gains but through cuts in social spending and the postponement of debt obligations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Budget 2026: more of the same?<\/h2>\n\n\n\n<p>The 2024 budget leaves behind a mixed legacy. The surplus was fueled by inflation and austerity in social programs, while resources were redirected toward security and inefficient sectors of the economy. Housing, utilities, education and healthcare all suffered.<\/p>\n\n\n\n<p>Early indications suggest that future budgets will follow the same path. Any additional revenue is likely to be funneled into the security apparatus, with social programs funded only at a minimal level. Structural reforms, once again, appear to be postponed indefinitely.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government has reported a budget surplus for 2024, overturning earlier expectations of a deficit. Revenue exceeded the target by 12 percent, while expenditures were reduced by 2 percent. Budget performance The original budget projected revenue of 39.9 billion rubels ($12 billion) and spending of 44.7 billion, leaving a deficit of 4.7 billion. Later, the [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":83319,"template":"","rubric":[22],"class_list":["post-151828","longreads","type-longreads","status-publish","has-post-thumbnail","hentry","rubric-theviewer"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Budget 2024: government cuts education, healthcare, social spending | Pozirk<\/title>\n<meta name=\"description\" content=\"The government has reported a budget surplus for 2024, overturning earlier expectations of a deficit. 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