Russia to increase spending in 2009

February 26, 2009

Russian Finance Minister Alexi Kudrin said government spending would increase in 2009 in spite of sharply falling revenues.

Revenues for the Russian government are expected to drop 42 percent this year, the Moscow Times reported Thursday. Nevertheless, Kudrin said government spending would increase by about $14 billion to stimulate the economy.

The increased spending will push the government’s deficit to 8 percent of the country’s gross domestic product, Kudrin said.

The figures were compiled with the assumption of oil priced at $41 a barrel and with an expected 2.2 percent drop in the gross domestic product this year, the newspaper said.

Source: upi

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