The parliament of the separatist region of South Ossetia voted in its 2018 budget draft on December 19, according to civil.ge. Thus, 86% of the RUB7.67bn ($130.8mn) projected in revenues is to be funded by Russia, as per the new bill.
Like Abkhazia, South Ossetia is heavily reliant on Russia for trade, aid and defence support. The two regions are internationally recognised as part of Georgia, but have been the subject of bitter and long-standing territorial conflicts.
Most South Ossetian citizens are also Russian citizens, and the region trades primarily with the Kremlin. Therefore, that its state budget would rely on handouts from Russia is to be expected, and is how the Kremlin continues to exert influence in the region.
Some 60% or RUB4.5bn of the spending will go to socio-economic projects, as per the budget law, and RUB2.1bn to public investment.
The 2018 budget will see a 5.3% y/y contraction in spending compared to 2017.
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