Russia budget deficit could hit 10 pct

By Dasha Korsunskaya

MOSCOW (Reuters) - Russia's 2009 budget revenues may fall short of expectations by as much as 800 billion roubles (16.1 billion pounds), deputy finance minister Tatyana Nesterenko said, suggesting that the budget deficit could hit 10 percent.

This year, Russia is braced for its first recession and budget deficit in a decade, hurt by low commodity prices and falling global demand for its exports.

Authorities have kept spending high to help the economy by using a $121 billion Reserve Fund, which is expected to cover the deficits through mid-2011.

But Nesterenko painted a more pessimistic scenario just days after parliament approved the revised, crisis 2009 budget.

"We see significant risks for the fulfilment even of the revised 2009 budget ... There is a risk of (revenue) shortfall of 800 billion roubles for the year," she said in comments cleared for publication on Monday.

The shortfall could be caused by above-forecast inflation, a deeper than expected economic slowdown and the inability to borrow as much as planned on the domestic market.

"If we spend another 800 billion roubles from the Reserve Fund that is very dangerous, including for macroeconomic indicators," Nesternko said, noting inflationary risks.

Finance Minister Alexei Kudrin has said that the currently planned 2009 budget deficit of around 8 percent of gross domestic product (GDP) is the maximum permissible level.