Russia to keep to its 2010 budget deficit plan - finance minister

Russia's budget deficit is unlikely to fall below the projected figure of 6.8% of GDP in 2010, as the government intends to fulfill its social obligations, Finance Minister Alexei Kudrin said on Wednesday.

Russia's budget deficit is unlikely to fall below the projected figure of 6.8% of GDP in 2010, as the government intends to fulfill its social obligations, Finance Minister Alexei Kudrin said on Wednesday.

"As of now, we do not predict a significant decrease in the deficit in 2010," Kudrin said at the Russia 2010 business forum in Moscow.

He said while rising oil prices increase budget revenues from hydrocarbon exports, they also push up the ruble and bring down the dollar. As a result, the dollar's depreciation by 1 ruble deprives the budget of about 120 billion rubles ($3.99 billion) in revenues, the minister said.

In line with the three-year budget approved late last year, Russia's budget deficit will drop to 4% of GDP in 2011 and 3% in 2012.

Earlier, Kudrin said the Russian government projected inflation at 9-10% in 2010, 7-8% in 2011 and 5-7% in 2012.

In 2009, the budget deficit measured only 5.9% of GDP as the budget received higher-than-expected revenues from hydrocarbon exports compared with the projected figure of 8%.

MOSCOW, February 3 (RIA Novosti)