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. Last Updated: 07/27/2016

Deficit Cut In Revision Of Budget

The Finance Ministry has revised the draft 2000 budget to cut the deficit and maintain forecasts for the primary surplus, as well as exchange rate and inflation targets, a government official said Wednesday.

Stanislav Naumov, spokesman for acting First Deputy Prime Minister Viktor Khristenko, said the ministry had approved changes and Khristenko had shown them to acting Prime Minister Vladimir Putin on Tuesday.

Naumov said the 2000 budget deficit would fall to 58 billion rubles ($1.81 billion at average expected exchange rate) from the 75.9 billion previously expected.

Budget revenues in the revised draft had been increased to 742 billion rubles from an earlier-planned 687.2 billion rubles and expenditures would rise to 800 billion rubles from a previously planned 763.1 billion rubles.

Inflation in year-on-year terms was still seen at 18 percent to 22 percent and the average ruble rate was expected to be 32 to the dollar.

The primary surplus, which is calculated before interest payments, was expected to be 3 percent of gross domestic product next year, up from 1.7 percent in 1999.

The government is to discuss the draft budget for 2000 on Aug. 12 and it is scheduled to be presented to the State Duma, the lower house of parliament, on Aug. 25.

The average ruble rate target in the 1999 budget is 21.5 per dollar, though it is already around 25.