Russia's Federation Council approves 2010 budget

The upper house of Russia's parliament adopted on Wednesday the federal budget for 2010 and basic budget parameters through 2012.

The budget was presented by Finance Minister Alexei Kudrin, who is also a deputy prime minister.

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 established at 6.95 trillion rubles ($238 billion), and expenditures at 9.88 trillion rubles ($338 billion).

The key budget parameters are based on the average annual price for Urals crude at $58 per barrel ($59 in 2011 and $60 in 2012).

Kudrin said the 2012 budget would be deficit-free if oil prices "significantly exceed $60 per barrel - and reach about $100."

He said in late October that Russia had come out of a "technical" recession and that inflation would not exceed 10% next year.

The European Bank for Reconstruction and Development (EBRD) has said Russia's GDP could grow 3.1% year-on-year in 2010 as the economy picks up after the problems of 2009.

However, both the EBRD and the Russian authorities are unanimous in predicting an 8.5% decrease in Russia's GDP for 2009.

The government expects to bring inflation in 2010 down to 9-10% and in 2012 to 5-7%. Inflation was 13.3% in 2008.

MOSCOW, November 25 (RIA Novosti)