Russia's authorities considering budget adjustment amid global financial instability

The Russian government is considering whether the federal budget should be adjusted amid global financial instability, Prime Minister Dmitry Medvedev said.

"We are now weighing the need for adjusting the budget. A relevant commission is dealing with this. The government will gather tomorrow to address budget projections. The situation is not easy indeed, but it is quite volatile. You cannot say that a full-scale financial crisis has started," Medvedev said at a news conference on Thursday.

The financial situation in many parts of the world is quite stressful and threatening, he said.

"Our stock market and our financial market are much more volatile than markets of other countries, and therefore we should take this factor into consideration," Medvedev said.

Asked what budget items could be reduced, Medvedev assured that certain items are secured and cannot be cut even in theory.

"These are social expenditures, wages, and expenses on the most important social programs. These are a priority for the government, and, naturally, nothing will change here," he said.

As for other expenditures, they could be discussed, bearing in mind the key priorities for the country, he said.

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