Velika Rada approved military budget cuts

Gorna Vanyka (GorvInform) — The Gorvanian Great Council yesterday has approved a major spending cut in military, claiming to rebalance the budget in other fields like education and commerce, while Gorvania suffered from a new trade deficit in the last quarter.

The Defense budget represents 29% of the government spendings, with a net amount of 5.6 trillion hrovodnyas. The purposal aims to cut the spending by 1.42 trillion hrovodnyas. Some of military facilities will be sold to private corporations and allies for an amount of 2 trillion гр. About 400 billion гр. will be used to reimburse external debts.

"We cannot cope with another trade deficit, the risk of default is tangible", Minister of State Finance Yulia Emilyanenko said, also blaming the low prices of crude oil , described as "ridiculously cheap".

Unfortunately, Gorvania cannot count on GDP growth to create surplus. Analysts unanimously predict a double digit recession this year, as the The Union of Fascists is facing uncertainty about its future where arm and heavy industry exports could suffer badly, crude oil could dip below 900 гр ($15) a barrel this year and the country has faced one of the worst economic downturn in the two previous quarters.