Russia's planned federal budget shortfall of around 2% for three years not considered large - finance minister

MOSCOW. Oct 20 (Interfax) - Russia's projected federal budget deficit for the next three years, averaging around 2% of GDP annually, is not significant under the current conditions, Finance Minister Anton Siluanov said.

"You mentioned a large deficit. I would disagree. Our average deficit over the next three years should be around 2% of GDP. I consider this a small deficit, given that we are concentrating resources on the major, overarching challenges facing our country," Siluanov said during a meeting with representatives of the A Just Russia [Spravedlivaya Rossiya] parliamentary faction.

Siluanov indicated the deficit levels in G20 nations, which average around 5% of GDP, as an example.

"Ours is 2%, which allows us to maintain a low level of debt, and, naturally, the trend will continue," Siluanov said.

The budget shortfall is projected at 5.443 trillion rubles, or 2.2% of GDP, for 2027, a figure that exceeds the 3.186 trillion rubles, or 1.2% of GDP, currently stipulated in the fiscal budget. The draft budget projects a deficit of 5.12 trillion rubles, or 1.9% of GDP, in 2028 versus the previously projected 3.514 trillion rubles, or 1.3% of GDP.

The deficit is forecast at 5.245 trillion rubles, or 1.9% of GDP, in 2029, a new year included in the forecast.