Finance Minister Estimates Russia's Budget Deficit in 2015 at 3.4% of GDP

Russia's budget deficit is estimated at 3.4 percent of the GDP prompting the government to improve the effectiveness of budget spending, Finance Minister Anton Siluanov told reporters following a Cabinet meeting with President Vladimir Putin on budget allocation policies.

MOSCOW (Sputnik) — Siluanov stressed that the government would have to review previous budget decisions and focus on deficit reduction through boosting the effectiveness of budget spending.

"In our estimates, the budget deficit reduction should be in the area of one percentage point per year, so that we could bring it to a minimum, or even eliminate it, by 2018."

The Russian economy is predicted to expand at a rate of 4-4.5 percent annually, starting from 2017, Economic Development Minister Alexei Ulyukayev said Wednesday.

Meanwhile, Economic Development Minister Alexei Ulyukayev said Wednesday that the Russian economy is predicted to expand at a rate of 4-4.5 percent annually.

"[Russian] economic growth may reach 4 percent beginning 2017, and 4.5 percent beginning 2018, which means that it will exceed the [average] global economic growth, while labor productivity will grow at an even faster pace."

According to the minister, this projection is based, among other things, on measures to support exports and small and medium-sized businesses, as well as import substitution.

The Russian economy has been in recession since 2014, caused by a drop in global oil prices and sanctions imposed on the country by Western states.