MOSCOW, October 20 (RIA Novosti) - The Russian economy is well prepared to deal with shocks on global markets, the prime minister said on Monday at a meeting of the foreign investment council presidium.

"Our economy is sufficiently prepared for lasting shocks," Vladimir Putin said.

He said Russia's government proposed allocating $7.6 billion for the Deposit Insurance Agency.

"I have instructed the Finance and Economic Development ministries and State Duma members to draft proposals to increase the power of the Deposit Insurance Agency," Putin said. "I request that amendments be made to the 2008 budget to allocate 200 billion rubles ($7.6 billion) as contributions for the Deposit Insurance Agency."

Russia's government also proposed cutting the tax burden on businesses by 0.5% of GDP next year, according to Putin.

However, he complained of some drawbacks in the country's economy, in particular the extensive use of petrodollars.

He also said Russia reported zero net capital inflow in January-September 2008.

"According to the latest data, we have had no net capital outflow from Russia in the [first] nine months [of 2008]," Putin said. "We have a balanced, zero inflow."

Speaking about the ongoing global credit crunch, Putin compared it to the Great Depression of the 1930s, and warned that economic growth in the United States, Western Europe and the European Union would slow down to zero in 2009, for the first time in 18 years.

"GDP [in the United States, Western Europe and the EU] in 2009 will remain at this year's level, while some countries are expected to report a recession," Putin said.