"The number of officials continues to rise against the general decline in the number of population in Russia,” he added. “In 2008, the number of civil servants in regions of the country amounted to 17 per 10,000 population, or 11 percent more than in 2007."

The top official noted that serious cuts are planned in the state administration.

“The operations of 19,000 offices and 6,500 industrial enterprises have been examined,” Sobyanin said. “A considerable part of these should be either liquidated or reorganized.”

Russia has recently seen a series of media scandals related to Russian officials’ immodest expenses.

Vladimir Kremlev for RT, click to enlarge

The ministry cited economic reasons for the purchase. It explained that it is cheaper to furnish its own residence rather than rent expensive hotels for foreign delegations.

On another occasion, a media frenzy made the Kemerovo Region administration cancel a tender for 30 gold, diamond-encrusted wristwatches, intended as awards to winning teachers and mothers with more than 10 children.

Meanwhile, the St. Petersburg Practical Astronomy Institute of Russian Academy of Science recently ordered a Mercedes-Benz E 350 car, estimated at US$100,000. The vehicle’s interior would have leather seats, a sunroof and an electronic parking system.

By now, however, the order has been withdrawn from the government purchase site.

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