Russian budget cuts may slow GDP growth, new study finds.
The Russian government's spending decisions have a big impact on the country's economy. A study looked at how effective these budget expenditures have been over the past 11 years. They found that for every 100 roubles spent, only 13 roubles were added to the GDP. However, during the recent crisis, this effectiveness almost doubled. Spending on areas like the national economy, housing, and ecology had the best results, with every 100 roubles spent leading to a 55 rouble increase in GDP. But, the planned budget cuts in these areas for 2011-2013 could slow down economic growth.