Putin signs Russia's 2016 budget into law

Russian President Vladimir Putin signed Tuesday the federal budget for 2016 into law, the Kremlin said.

Budget revenues in 2016 are projected at 13.74 trillion rubles (nearly 200 billion U.S. dollars at current rate of 70.22 rubles per dollar), according to an official statement.

Expenses are expected at 16.099 trillion rubles (nearly 230 billion dollars), and a deficit at 2.36 trillion rubles (over 33 billion dollars), or 3 percent of the projected GDP of 78.67 trillion rubles (over 1 trillion dollars).

The budget is based on the average oil price of 50 dollars in 2016 and envisages an inflation of 6.4 percent, which is nearly half of the 12.2 percent expected for this year.

Normally the budget was compiled for three years, but this year Kremlin decided to shorten the time period and draft the budget for one year, due to a decline in oil prices and the fluctuation of the Russian national currency ruble.

Currently the international market is experiencing a plunge of oil prices, which brings the corresponding depreciation of ruble.

The Russian Central Bank set the official exchange rate of the ruble for Wednesday at a historic low of 70.83 per dollar.

Brent crude on Tuesday managed to hover around 38 dollars after falling as low as 36.33. dollars a barrel on Monday, its weakest since December 2008.

Kremlin spokesman Dmitry Peskov on Tuesday described the current currency fluctuation as "worrisome."

And Russian presidential aide Andrei Belousov predicted that the oil price fluctuation would stay below 40 dollars a barrel for a long time. Endi