State Duma earmarks $6.7 bln to prop up financial system in 2009

MOSCOW, October 17 (RIA Novosti) - The lower house of the Russian parliament on Friday authorized the government to use 175 billion rubles ($6.7 billion) to shore up the country's financial system.

The State Duma voted to approve government-proposed amendments to the 2009-11 draft federal budget in its second reading.

Prime Minister Vladimir Putin said at a government meeting October 1 that the government would allocate up to 175 billion rubles to support the Russian financial market.

Russia's financial system has been affected by a global credit crunch which started in the U.S. and quickly spread to Asia and Europe leading to record losses on Russia's financial markets, rising interest rates and a liquidity shortage.

Budget revenue in 2009 is planned to reach 10.9 trillion ($414.1 billion) (about 19% of GDP), in 2010, 11.73 trillion ($445.6 billion), or 18.8% of GDP, and in 2011, 12.84 trillion rubles ($487.8 billion), or 18.1% of GDP.

Inflation in 2009 is expected to hit 8.5%, and 7% in 2010 dropping slightly in 2011 to 6.8%.