Putin Sees Risk of Budget Deficit

Russian President Vladimir Putin said on Friday there was a risk this year’s federal budget deficit could slightly exceed 3.7% of gross domestic product, Reuters reported. Putin told a meeting with government officials on the economy that it would not be a disaster if the deficit were to hit 3.8-3.9% of GDP, but that Russia should aim for a level of 3.7% of GDP. Russia’s economy shrunk 3.7% last year in the wake of western sanctions and low oil prices, and is on track to shrink again this year.