Minister: Russia’s budget deficit at 4.3% of GDP in Jan–Jun

MOSCOW, Jun 29 (PRIME) -- Russia’s budget deficit amounted to 4.3% of gross domestic product (GDP) in January–June, which is significantly higher than expected for 2016, Finance Minister Anton Siluanov said Wednesday at a meeting of the Federation Council, the parliament’s upper house.

“The situation with fulfillment of the federal budget in the first half of the year is as follows -- deficit amounted to 4.3% of GDP, significantly higher than we estimated for the whole year,” he said.

Previously, he said that the 2016 budget deficit could reach 3.3% of GDP if the oil price stands at U.S. $40 per barrel.

The Finance Ministry will also spend the money of the Reserve Fund very carefully so that spending does not exceed 2.2 trillion rubles in 2016, he said. Previously, he forecast spending form the Reserve Fund at 2.1 trillion rubles at an oil price of below $50 per barrel, but said it may shrink of the oil price rises.

(64.8095 rubles – U.S. $1)

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