Russia’s finance ministry expects zero fedl budget deficit in 2011

MOSCOW, Aug 31 (PRIME) — Russias Finance Ministry expects the federal budget deficit at zero in 2011, Deputy Prime Minister and Finance Minister Alexei Kudrin told reporters Wednesday, RIA Novosti reported.

The ministry plans to adjust its forecast on the countrys federal budget in 2011 by the end of Friday, Kudrin said.

The ministry expects the countrys budget deficit in 2012 to be lower than is currently projected due to higher oil prices, Kudrin also said. He said earlier that the budget deficit in 2012 is expected to amount to 2%3% of the gross domestic product (GDP) if the price of oil is at U.S. $93 per barrel, but if the price amounts to $105 per barrel, the deficit is to amount to 1.0%1.5% of GDP.

In early June, Russian President Dmitry Medvedev signed into law amendments revising the budget deficit down to 1.3% of the GDP, from 3.6% of the GDP previously, in 2011. Under the amendments, the federal budget deficit is expected at 2.7% of GDP in 2012.

Russias federal budget surplus was at 722.65 billion rubles in JanuaryJuly and accounted for 2.5% of GDP, the ministry said earlier in August.

Russias federal budget deficit amounted to 3.9% of GDP in 2010.

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