Bringing out an austerity package, Russian President Vladimir Putin fired nearly 110,000 officials of the Ministry of Interior. He had signed a decree last week limiting the number of officials in the Ministry which would reduce the total workforce by 10 per cent.
The IMF has claimed that the country's economy shrunk by 2.2 per cent in the first quarter of 2015; their estimate for the full year is a 3.8 per cent GDP decline. The pain will continue into 2016, when they’re expecting a drop of over one percent. The Kremlin is trying to cut approximately all government spending by 10 per cent to compensate the same.
However, experts says that the government’s new austerity package and firing of 110,000 officials will only help the Russian economy deteriorate.
The Russian Government is suffering its worst economic crisis in years due to a combination of two factors; Dropping oil prices and Western Sanctions, imposed by Putin’s involvement in the crisis of Ukraine.
The unemployment in Russia, as recorded in June was 5.4 per cent against the 4.8 per cent in 2014.
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