Russia to Borrow $52 Billion to Cover Budget Deficit

The Budget of the Russian Federation for 2010 has been reviewed by President Dimitrii Medvedev, and will be approved after some corrections of the Ministry of Finance, writes Vedomosti newspaper.

Budget expenditure will be 9.822 trillion ruble, income – 6.636 trillion ruble and a deficit of 3.186 trillion ruble.

The volume of budget deficit was increased by 7.5% creating a budget deficit of 500 billion ruble.

To cover the deficit, the Ministry of Finance may borrow from the domestic market 962 billion ruble and the external market 649 billion ruble.

Taking into account the average of 34.5 of the Russian currency against the U.S. dollar, external borrowing size could reach 19 billion dollars, which would increase the external state debt of the Russian Federation.