“The decision has been taken to borrow as much as possible from local and foreign markets and to protect the National Welfare Fund as much as possible,” Alexei Lavrov, head of the ministry’s budget department, said Monday, referring to one of the country’s two sovereign wealth funds.
The draft of the budget for the next three years is due to be submitted to the government by the end of the day, Lavrov said.
The sale is four times bigger than the amount Russia initially planned. It may borrow a further $11.5 billion next year from foreign lenders, including the World Bank, the Finance Ministry said.
The government aims to sell 764.7 billion rubles of debt in 2011 and 784 billion rubles’ worth in 2012.
The Finance Ministry increased its forecast for the budget deficit in 2009, saying it expects the gap to account for 9.4 percent of gross domestic product this year, 7.5 percent of GDP in 2010 and 4.3 percent of GDP in 2011.
The shortfall will reach 3.2 trillion rubles next year and 2 trillion rubles in 2011, the Finance Ministry said Monday. The government expects revenue at 6.6 trillion rubles in 2010, while spending will total 9.8 trillion rubles.
The Reserve Fund, one of the two sovereign wealth funds, will be exhausted in 2010, the ministry said Monday.
The stockpile contained 2.96 trillion rubles as of July 1 and will have 1.6 trillion left by October after 1.36 trillion rubles was transferred this month to finance the deficit.
The National Welfare Fund, which contained 2.8 trillion rubles as of July 1, will total 2.3 trillion rubles at the end of next year, 1.6 trillion rubles in 2011 and 940 billion rubles in 2012, the ministry said.