icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Russia may face years of budget deficit – Putin

Russia will most probably have to deal with a budget deficit for years to come, Prime Minister Vladimir Putin warned on Thursday.

In 2009, for the first time in eight years, Russia’s budget is expected to see a deficit of around 3 trillion roubles (about $89 billion), or 7.5% of economic output (GDP).

The Prime Minister stressed that it is necessary to pay close attention to increasing efficiency in budget spending.

“The deficit problem should be solved by civilized, internationally-recognised means – with the help of reserves,” he said.

Putin said the government will not resort to printing money to cover the deficit and will not cut the funding to key programmes.

He added instead of relying on ‘super-large oil revenue’, regular taxes from businesses and citizens will play a key role in filling the budget gap.

But the Prime Minister warned against attempts by tax and customs authorities to, in his words, “terrorise” businesses.

Podcasts