Reuters International

MOSCOW (Reuters) - Russia's finance ministry is proposing that defence expenditures are trimmed by 6 percent annually over the next three years, along with similar cuts in other ministerial spending, a government source told Reuters on Friday.

The cuts aim to keep total state spending at a fixed 15.787 trillion roubles (184.97 billion pounds) each year, according to the finance ministry's proposal.

The ministry is also proposing extending a freeze in pay increases for state employees for another three years. The freeze was introduced at the start of this year and was to have run for one year. People in public sector professions such as teaching and healthcare are excluded from the freeze on pay rises.

(Reporting by Dasha Korsunskaya; Writing by Lidia Kelly; Editing by Christian Lowe)

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