Moscow reduces spending as Russian regional deficits grow
Moscow is cutting its investment program by 10% and reducing staff as revenue growth slows. This shift highlights growing fiscal deficits across most Russian regions.
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The city of Moscow, Russia's wealthiest federal unit, is set to reduce its extensive investment program for the first time since the COVID-19 pandemic. This decision highlights the deteriorating state of regional finances as the conflict in Ukraine persists. Mayor Sergei Sobyanin, a figure known for modernizing the capital, announced the rare austerity measures via social media, indicating a shift from his usual focus on infrastructure expansion.
