Finance Ministry Bids to Limit World Cup Spending
- The Moscow Times
- Jun. 17 2013 00:00
- Last edited 16:49
Faced with theáneed toáfork out anáadditional 250 billion rubles ($7.8 billion) foráthe 2018 World Cup, Finance Minister Anton Siluanov has asked Prime Minister Dmitry Medvedev toálegally set this sum as theáfinal figure.
Theácurrent cost ofáthe World Cup preparations amounts toámore than 660 billion rubles with over half ofáthe sumá— 336 billion rublesá— meant toácome fromáthe federal budget, Interfax reported.
So far, expenditures ofáonly 86 billion rubles have been authorized byáthe government, while theáprovision ofáanother 250 billion rubles is awaiting approval.
Initially, when Russia won theábid to host the World Cup iná2010, theácosts were projected atáabout $10 billion.
TheáSochi Winter Olympics preparations have also been troubled byáspiraling outlays, as the originaláamount projected ended up being increased aboutá500 percent.
“The experience we have ináother major events such as Sochi shows that there may be cost-increase issues forásome events andáproposals toáadd more items,” Siluanov said, Interfax reported.
“For this reason, we think it will be reasonable today toámake theádecision that theásum ofáadditional spendingá— 250 billion rublesá— is final,” he added.
He also said that instead ofáincreasing spending, it would be feasible toácreate aáreserve fund that could be allocated toáensure security andáfor other measures that are crucial foráthe progress ofáWorld Cup preparations.
Siluanov’s remarks were made on the same day thatáPresident Vladimir Putin made his budget policy presentation, during which he also urged theáCabinet toáfind additional sources of funding, even though theáfederal budget faces falling revenues.