MOSCOW, July 29 (RIA Novosti) - Russia's Finance Ministry has submitted a draft budget for 2010-2012 to the government for consideration, a ministry source said on Wednesday.

"The document was submitted to the government yesterday and today it will be examined at a government commission," the source told RIA Novosti.

Once the budget's main parameters are approved by the government commission for budget projections led by Prime Minister Vladimir Putin, the budget will be discussed in greater detail, following which it will be submitted to the lower house of Russia's parliament for consideration.

As in 2009, the three-year budget will run a budget deficit due to the decline in industrial production and lower tax revenues as a result of the ongoing global economic crisis, the source said.

The 2010 budget deficit is expected at 7.5% of GDP or 3.187 trillion rubles ($101.5 billion at the current exchange rate). The government promises to honor in full social commitments, which will account for over 73% of budget spending in 2010, the source said.

Also, the government will not make any cuts in expenditures on defense and preparations for the APEC (Asia-Pacific Economic Cooperation) summit in Vladivostok in Russia's Far East in 2012 and the 2014 Winter Olympic Games in the Black Sea resort of Sochi, the source said.

At the same time, the government intends to cut expenditures on some investment and federal target programs, expenditures on budget-financed organizations and subsidies, the source said.

As a whole, 2010 budget expenditures will stay at about the 2009 level, as they will amount to 9.82 trillion rubles ($312.8 billion) as compared with this year's 9.77 trillion rubles ($311 billion), the source said.

The government intends to cover about half the budget deficit in 2010 (1.675 trillion rubles or $53.3 billion) through the Reserve Fund, which will have been drawn down completely by the end of next year, the source said.

Also, 681.7 billion rubles ($21.7 billion) will be allocated from the National Welfare Fund and 830.3 billion rubles ($26.4 billion) from other sources to bridge the budget deficit in 2010, the source said.

In addition, the Finance Ministry plans to raise money on external markets in 2010 after a 10-year break. In particular, the Finance Ministry intends to issue Eurobonds worth 613.6 billion rubles ($17.78 billion) and raise another 11.5 billion rubles ($365 million) from international financial institutions, the source said.

Apart from that, the Finance Ministry is proposing to increase some taxes. In particular, the ministry wants to raise excise duties on tobacco and alcohol, increase state duties, export duties on gas and petroleum products and adjust the mineral extraction tax, the source said.