Russia"s federal budget deficit will not...

The Finance Ministry earlier predicted the budget deficit to rise above 7% of GDP in 2010.

"But now, considering the upgrade of the macro-economic forecast and spending cuts, the deficit will not exceed 7%," Kudrin said.

Kudrin said the budget deficit would decline to 4% of GDP in 2011 and 3% in 2012.

In 2009, the budget deficit measured only 5.9% of GDP, compared with the projected figure of 8%, as the budget received higher-than-expected revenues from hydrocarbon exports.

MOSCOW, February 25 (RIA Novosti)