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. Last Updated: 07/27/2016

Declining State Aid

In the Soviet era, the role of the government was all-embracing. According to official data, government expenditures were equivalent to 70 percent of the GNP, although it's likely that the figure was even higher.

In 1992, the government's participation in the economy was sharply reduced ... In that year, government expenditures (including federal and regional budgets) were equivalent to about 60 percent of the GNP, close to that of successful Scandinavian countries and considerably exceeding the level of most industrially developed nations. In 1995, government expenditures were reduced to a level equivalent of 35 percent of the GNP, like the level of many developed countries. It's easy to assume that this figure is a bit high, since a significant part of the Russian economy is not included in official statistics. If the figure is re-examined with this in mind, it may fall to 30 percent.