President Dmitry Medvedev approved on Wednesday the federal budget for 2010 and basic budget parameters through 2012.

The 2010 budget will run a deficit of 6.8% of GDP, or 2.9 trillion rubles ($100 billion). It should fall to 4% of GDP in 2011 and 3% in 2012.

Budget revenues are defined at 6,950 billion rubles ($238 billion), and expenditure at 9,886 billion rubles ($338 billion) in 2010.

The key budget parameters were calculated proceeding from the average annual price for Urals crude at $58 per barrel in 2010, $59 per barrel in 2011 and $60 per barrel in 2012.

Under the 2010 budget and basic budget parameters for 2011-2012, Russia's GDP is expected to grow 1.6% in 2010, 3.0% in 2011 and 4.3% in 2012. The government plans to keep inflation within 9-10% in 2010 and reduce it to 8% in 2011 and to 7% in 2012.

MOSCOW, December 2 (RIA Novosti)