The federal government must cut its staff by 20 percent over the next three years and prohibit any further growth of the bureaucracy, according to a draft decree the Finance Ministry published Tuesday.
Starting April 1, 2011, the federal and regional offices of the executive branch should have 5 percent fewer officials than on July 1, 2010, according to a copy of the order posted on the ministry's web site.
The reductions should rise to 10 percent from the base level on April 1, 2012, and then to 20 percent one year later. Half of the revenue savings from each state body would be returned to improve salaries, the order said.
Finance Minister Alexei Kudrin has said that slashing the federal headcount by 20 percent could save the budget 37 billion rubles ($1.2 billion) per year, even after half of the revenue is returned.
The measure has strong support from the Kremlin. President Dmitry Medvedev backed the idea June 8, when he ordered the government to draft a concrete proposal. The reductions were also included in Medvedev's budget plan for 2011-13, published June 29.
To take effect, the order would only require Prime Minister Vladimir Putin's signature and publication in Rossiiskaya Gazeta.
If approved, the order would bring the first post-Soviet cuts to Russia's federal bureaucracy, which has swelled over the past decade. Analysts say the cutbacks could create political risks ahead of the 2012 presidential elections.
Regional governments should "make corresponding decisions," the document said. The order does not mention the presidential administration.
The Finance Ministry did not offer a base number of officials, but Vedomosti has said 120,507 federal positions would fall under the order, suggesting cuts of 24,101 jobs by 2013.
After the job cuts are completed on April 1, 2013, government agencies must wait until Jan. 1, 2014, before making any new increases in their number of personnel.