Russian budget spending to grow by 1 pct of GDP next year - Kudrin.

ST. PETERSBURG, June 18 (Itar-Tass) -- Russian budget spending will
grow by 1.5 percent of the GDP as of next year, Deputy Prime Minister,
Finance Minister Alexei Kudrin said at the St. Petersburg Economic Forum
on Friday.
"We are now heavily dependent on high oil prices, 40 percent of our
budget is related to incomes from oil and gas and refining," he told the
Russia-24 TV news channel.
"Before the crisis we could balance the budget at a price of 90
dollars per barrel. Now we depend on revenues and spend at about 115
dollars, that is precisely at a price where a balanced budget is
achieved," said Kudrin. In his view, a price of 115 dollars can last for
one year to three years, but it will not stay for a period of five to ten
years.
He added that the defense order was growing four times, cash
allowances, 2 - 2.5 times. Alongside this pensions to military and
programs for supporting the defense industry were growing, too. "The total
costs as of next year will increase by 1.5 percent of the GDP," the
minister said. "This means that we have come to a point where we should
not increase our dependence on oil, for there occur additional risks to
inflation," he said.
"We need to think in the coming years how to be more moderate, but
this will limit the adoption of new programs," Kudrin said.