Russia's 2012 budget deficit may drop to below 1.5% of GDP - Putin
MOSCOW. Sept 13 (Interfax) - Positive macroeconomic dynamics may narrow Russia's budget deficit in 2012, Prime Minister Vladimir Putin said late Monday.
At present, the 2012 budget deficit is being forecast at 1.5% of gross domestic product, Putin said, opening a session of the trilateral commission for budget planning.
"I hope that positive macroeconomic dynamics will make it possible to adjust these positions down and will bring us closer to a balanced budget," he said.
Forecasts show that "the Russian economy will by the beginning of next year completely recover from the recession and continue its growth, generating strong revenue for the treasury," Putin said.
He said the Finance Ministry forecasts that federal budget revenues will total 11.8 trillion rubles in 2012 and spending will amount to 12.6 trillion rubles. However, these figures are preliminary, he added, recalling that the deficit for 2011 was initially targeted at 3.7% of GDP but the government now expects a zero deficit for the year.
Putin said the government would discuss the final draft of the federal budget at a meeting on September 20, after which the budget bill for 2012-2014 is supposed to be submitted to the State Duma by October 1.
Putin said this draft budget is intended to be a development budget, so some of the spending priorities are scientific research and innovation, as well as infrastructure support for economic growth and support for small and medium businesses.
"And of course, at the center of our attention will be investment in development, human welfare, Russian families," Putin said.
