“Serious drop in Karelian economy”
The economy in the Republic of Karelia is experiencing a “serious drop”, regional leader Sergey Katanandov said in a meeting yesterday. He underlined that regional authorities will use all means to preserve stability in the region.
The governor underlined that his region now is in need of financial aid from the federal government. He admitted however that the republic over the next months will have to lean on its own capacities, Severinform.ru reports.
Mr. Katanandov also said that the regional 2009 budget will be revised. Originally, the budget had a 1.5 billion RUB of extra spending compared with 2008. The regional leader explained the necessary cuts with the fact that “traditional financing is reviewed also on federal level”.
Salaries in the region are now undergoing cut. Civil servants will have their salaries cut by 10 percent or more this year, Katanandov confirmed in the regional government meeting.
