The federal budget swung to a deficit in February after the government boosted spending, the Finance Ministry said Thursday.
The government's two-month deficit was 194.6 billion rubles ($6.6 billion), or 3.2 percent of gross domestic product, after a revised surplus of 87.1 billion rubles, or 3.1 percent of GDP, in January, the Finance Ministry said on its web site, citing preliminary figures.
Revenue reached 1.3 trillion rubles at the end of February, or 18.8 percent of the government’s target for 2010, while spending was 1.5 trillion rubles, or 15.2 percent of planned expenditure. Spending last month jumped almost 31 percent compared with January, which began with a 10-day holiday period.
Spending, typically low at the start of the year, is set to accelerate through December when the shortfall will probably be 6.8 percent to 7 percent of GDP, Finance Minister Alexei Kudrin said Feb. 25. The gap may narrow to 4 percent next year and 3 percent in 2012 as the price of oil averages about $70 a barrel, Kudrin said.
“We must have a quality 2011 budget, which will work to solve the goals of long-term development and guarantee the unconditional fulfillment of the government’s social responsibilities,” Prime Minister Vladimir Putin told a government meeting March 9, an official transcript shows.
The government ran a budget deficit of 5.9 percent of GDP last year, its first in a decade, after the economy contracted a record 7.9 percent. The economy is set to grow 3.1 percent this year, according to the government’s forecast.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.