MOSCOW, July 1 (RIA Novosti) - Russia's Reserve Fund declined 5.5% to 2.957 trillion rubles ($94.52 billion) while the National Prosperity Fund grew 1% to 2.814 trillion rubles ($89.93 billion) in June, the Finance Ministry said on Wednesday.

The Reserve Fund was set up to cushion the federal budget against a fall in oil prices, and the National Prosperity Fund is intended to help the government carry out pension reforms.

Finance Minister Alexei Kudrin earlier said that the projected 7.4% federal budget deficit in 2009 would be covered by the Reserve Fund. He said the largest budget deficits were expected in the second, third, and possibly fourth quarters, as the government spends more on anti-crisis measures.

Russia posted a budget deficit of 50 billion rubles ($1.5 billion), or 0.1% of gross domestic product, in the first quarter of this year.