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16:06
RUSSIA CAN AFFORD DEFICIT OF 7.5% OF GDP IN 2010 WITHOUT HARMING MACROECONOMIC STABILITY – PUTIN

Moscow, July 30 (Interfax) - Russia can afford to have a budget deficit of up to 7.5% of GDP in 2010 without inflicting harm on macroeconomic stability, Prime Minister Vladimir Putin said at a government meeting on the budget in 2010-2012 on Thursday.

The federal budget deficit will amount to about 3.2 trillion rubles in 2010, or 7.5% of GDP, he said.

"I should say frankly that this is the maximum deficit we can afford without harming macroeconomic stability, and we do not have the right to disrupt macroeconomic stability," he said, noting that this would affect ordinary people most of all.

Putin also said that "no sort of populism should be allowed" when preparing the budget. He said he was not only appealing to government members, but to the State Duma and Federation Council as well.

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