RIA Novosti quoted Mr Andrei Klepach deputy economic development minister of Russia as saying that the federal budget deficit this year may come in at 1% of GDP.

He said that the forecast is based on the assumption that the budgetary revenue base in 2012 will be higher than 2011, also factoring in oil price dynamics, adding that GDP will therefore also be higher.

In 2011, the federal budget had a surplus of 0.8% of GDP amid soaring oil prices. This year's deficit may be covered by issuing domestic debt of about RUB 1 trillion.

(Sourced from www.rianovosti.com)