Oil Has Major Impact on Russia's 2010 Budget

WASHINGTON, Sept. 23 (UPI) — The Russian government has approved draft legislation for the 2010 federal budget and projected provisional revenue and expenditures for 2011-2012.

RIA Novosti reported Wednesday that Deputy Prime Minister and Finance Minister Aleksei Kudrin told journalists, “The budget has been approved and will be submitted to the State Duma by October 1.”

While the dramatic slump in global energy prices has severely impacted the Russian economy, the world’s second-largest oil exporter, under the draft law budget revenue in 2010 will total $232.1 billion, 16.1 percent of GDP. According to the draft budget, oil and gas revenue is to grow 14.2 percent to $106.6 billion, while non-oil and gas revenue is projected to decline 4.1 percent to $125.4 billion.

According to Kudrin, in 2010 overall government expenditures will increase over 2009 levels despite a 20 percent reduction in spending on state management. The draft budget is based on conservative forecasts for Russia’s 2010 socioeconomic development and the projected 2011-2012 time frame.

The budget uses a baseline prediction of Russian Siberian Urals oil trading on the global market at $58 per barrel in 2010, $59 in 2011 and $60 in 2012.

Copyright 2009 by United Press International

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