MOSCOW, September 22 (AVN) -- Russia's debt to retired servicemen has reduced by 1.3 billion roubles (about 52 million U.S dollars) and currently makes 2.8 billion roubles (112 million dollars), a source in the Finance Ministry told the Military News Agency on Wednesday.
According to him, the debt emerged because the 1999 federal budget envisaged no monet to finance increase in pensions which came into force on January 1, 1999. That is why pensioners began receiving increased pensions only in August, after President Boris Yeltsin approved amendments to the budget.
The government considers repayment of pension arrears its top priority and does its best to find necessary financing, the source said.