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. Last Updated: 07/27/2016

State Agencies Told to Find Cost Cuts

President Dmitry Medvedev on Tuesday ordered his chief of staff, Sergei Naryshkin, and other government management bodies to prepare proposals on spending cuts as part of the drive to combat the economic crisis.

"The economic situation is not easy," Medvedev said in remarks on the Kremlin's web site. "Therefore, we have to think about the economy in state spending at all levels and in any state body."

Medvedev said his administration would have to make "an example" on spending cuts. He said Feb. 15 that control measures are needed through the economy, "from top to bottom and back again."

Russia's first budget deficit in a decade may reach 8 percent of gross domestic product this year, potentially forcing the government to spend half its sovereign wealth fund to cover the shortfall, Medvedev's economic aide Arkady Dvorkovich said Feb. 11.