President Vladimir Putin has ordered the Russian government to stabilize regional finances as local authorities face a combined budget deficit of 1.9 trillion rubles ($22.6 billion) this year.
The order comes as the federal government struggles to fill its own budget shortfall, which has reached 6.5 trillion rubles ($77.4 billion).
“The stability of regional finances is also the direct responsibility of the federal government and the Finance Ministry,” Putin said at a meeting with senior officials.
Finance Minister Anton Siluanov said Russia’s regions currently owe a combined 3.3 trillion rubles ($39.3 billion), equal to about 17% of their own revenue.
Around two-thirds of that debt consists of low-interest loans from the federal government. The rest is borrowed on the market and carries much higher interest rates.
