The Russian federal budget had a deficit of 50.48 billion rubles (US$1.5 billion) in the first quarter, the Finance Ministry announced on Thursday.

Russian Finance Minister Alexei Kudrin reported to President Dmitry Medvedev on Thursday that the budget revenue fell by 473 billion rubles, or 24.5 percent, in the first quarter this year compared with the same period last year. Spending rose by 447 billion rubles, or 33.6 percent.

The forecast decline in the budget for the full year is 28 percent, the Interfax news agency quoted the finance minister as saying.

The increase of the deficit is caused by the funds allocated to implement anti-crisis measures, including support for the pension system, support to sub-federal entities and a host of key industries, such as the defense and automotive sectors, said Kudrin.

The updated federal budget sets expenditures at 9.7 trillion rubles, and revenues at 6.7 trillion rubles, allowing a deficit of3 trillion rubles, or 7.4 percent of the gross domestic product (GDP).

(Xinhua News Agency April 10, 2009)