(MENAFN) Russia's budget deficit is set to increase 3.2 percent of gross domestic product in 2015 despite having more than USD20 billion in spending cuts, Gulf Daily News reported.
The predictions come as a result of the decrease in global oil prices, which has led to a sharp fall in projected tax revenues, and a range of Western sanctions tied to the crisis in Ukraine.
In 2014, deficit came in at 0.5 percent of GDP and is predicted to rise to just 0.6 percent in 2015.
In addition to spending cuts, the government also plans to run out almost half the money in its Reserve Fund in 2015, about USD43.5 billion to help contain the deficit.
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