Russian president approves 3-year budget

Russian President Dmitry Medvedev approved on Thursday the 2012-2014 budget drawn up by former finance minister Alexei Kudrin.

The budget deficit is set at 1.5 percent of gross domestic product in 2012, 1.6 percent of GDP in 2013 and 0.7 percent of GDP in 2014.

The document is based on the price of Urals oil blend of $100 per barrel in 2012, $97 in 2013 and $101 in 2014. Consumer prices are expected to grow 5-6 percent in 2012, 4.5-5.5 percent in 2013 and 4-5 percent in 2014.

Budget income is expected at 11.780 trillion rubles ($383 billion) in 2012, 12.706 trillion rubles in 2013 and 14.092 trillion rubles in 2014, while expenses may amount to 12.656 trillion rubles in 2012, 13.731 trillion rubles in 2013 and almost 14.583 trillion rubles in 2014.

The government plans to reduce the share of oil and gas revenues and raise the share of non-hydrocarbon income by planning a growth of earnings from value added tax and excise duties.


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