Russia in February's budget deficit more than doubled

• On March 13, the Wall Street Journal reported that Russia's Treasury released data show that due to the fall in oil prices and the West's sanctions led the economy into recession, Russia in February when the Government budget deficit rose more than twice times.
  Russia the Treasury report noted that while February's slightly reduced government spending, but the revenue contraction in the same period expanded, resulting in budget deficit-GDP ratio soared from 4.2% in January 10.5% in February.
  As Russia is one of key export products of oil, its price in the recent slump caused Russia collapse in government revenues. Russia Vladimir Kohler Cen Fu, Chief Economist of the Bank for foreign trade (Vladimir Kolychev) also pointed out that VAT and other tax revenues associated with shrinking government revenues of the fall in oil prices took a hit.
  Vladimir Kohler Cen Fu said that military spending is growing faster than the market expected in the near future, making the problem worse. But, he said, it could be a temporary development, budget deficits should be narrowed in the second half in 2015.
  Russia President Vladimir Putin has called on the Government to reduce spending, or even will cut their pay by 10%. But he also stressed that in 2015 will not be reducing expenditure on defence and law enforcement agencies. Although the ruble devaluation, inflation has achieved double-digit percentage levels, economic contraction continues, but according to opinion polls, Putin's approval rating remained at 80% per cent.
  Russia Ministry of finance data showed due to alleged fall in non-oil and gas revenue, growth gap between income and expenditure in the near future. This type of income in February was 428.2 billion rubles (US $ 7.96 billion), far less than in January when 803.4 billion rubles.
  Total budgetary revenues February 2015 is 953.5 billion rubles, also much lower than a month before the 1.3 trillion rubles budgeted costs decreased from 1.54 billion rubles in the same period to 1.5 billion rubles.
  Patterns of budgetary changes with broader economic trends remain the same. Forecasts show that the Russia of a shrinking economy in 2015 there will be 3%, consumption and investment activities and other key drivers of demand could drop this year are being maintained.
  Due to the international sanctions of the West, Russia Finance Ministry has been unable to obtain financing through global capital markets. In Thursday's report, the Treasury forecast 2015 budget deficit will be 3.8% per cent of GDP over the same period, and said they would use reserve funds to close the budget gap, since it will be in 2009 for the first time.
  As Russia international currency reserves are part of the Fund comes from the Treasury benefited from higher oil prices during the past years of accumulation, consisting largely of foreign currency due to this Fund, its costs could mean that Russia's Central Bank needs to print more rubles to meet budget needs.
  Data released on Thursday showed that Russia's Central Bank holdings of gold and foreign currency reserves declined by $ 6.3 billion in the week ending March 6, to 356.7 billion dollars, was the lowest level since mid-April 2007.
  Russia's Central Bank said in a e-mail in response to media enquiries, the decline in reserves was mainly due to revaluation of its assets over the past week to reflect the euro fell against the dollar over the same period.
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