Kudrin:the budget deficit of the Russian Federation may exceed 5.3 percent of GDP at an oil price of $32

Kudrin:the budget deficit of the Russian Federation may exceed 5.3 percent of GDP at an oil price of $32


The current budget is balanced with a deficit of 3% of GDP on the basis of the forecast that the average annual oil price will be $ 50 per barrel.

MOSCOW, 13 Jan. The former Minister of Finance, the head of Committee of civil initiatives (THD) Alexei Kudrin estimates the budget deficit of the Russian Federation higher to 5.2-5.3 percent of GDP while maintaining oil prices at current levels.

“Now it (the oil price — ed.) has about 32 (dollars per barrel), Urals — still less, about 29 dollars, already. And if the price remains at this level, it can cause the budget deficit more than a 5.2-5.3 per cent of GDP,” Kudrin said, speaking Wednesday at one of the panel discussions at the Gaidar forum.

He recalled that the current budget is balanced with a deficit of 3% of GDP on the basis of the forecast that the average annual oil price will be $ 50 per barrel.

As announced earlier on Wednesday on air of TV channel “Russia 24” the head of the Ministry of economic development Alexey Ulyukaev, the government is considering the possibility of increasing the budget deficit in 2016 to 7-7. 5% of GDP, while maintaining extremely low oil prices.