Russian Prime Minister Vladimir Putin demanded on Monday that the government prevent a further rise in spending on infrastructure projects and ordered the dismissal of the officials responsible for mounting expenses.

"The principles of the formation of pricing should lead not to a rise, but rather to a decline in costs and a reduction in budget expenditure," he said, referring to large-scale state construction projects in connection with the 2014 Winter Olympics in Sochi and the 2012 APEC summit in Vladivostok.

"This is particularly important when we have a budget deficit...and, in general, we cannot simply take risks with state funds," an exasperated Putin said at a meeting with Deputy Prime Minister Dmitry Kozak. "What is this all about?"

"The responsible people...should be dismissed immediately," Putin ordered. "This very day!"

Putin also expressed dissatisfaction with the fact that while salaries, supplies and energy prices are lower in Russia than in western Europe, construction costs are often higher.

"Several pricing principles were recently altered. But what is the result?" he went on. "The result is the opposite of our expectations! The prices have risen!"

"What is going on?" he asked.

MOSCOW, March 22 (RIA Novosti)