MOSCOW — Budget surplus will total 4.9 percent of the GDP in 2005, if the benchmark Urals blend amounts USD39 per barrel. Earlier Russia's budget was supposed to benefit from 1.5-percent surplus. the Russian Economic Development and Trade Ministry has submitted a corresponding report to the cabinet, which will hold a meeting to consider the scenario for Russia's social and economic development on April 7. Higher budget surplus will make it possible to finance growing deficit of the Pension Fund and early repayment of state debt. In 2006 budget surplus is expected to lower to 1.6 percent of the GDP, and in 2007 this rate is expected to reach 1.1 percent of the GDP.

The reason for this revision was high oil prices which entailed the revision of federal budget revenue. Under the recent estimates, budget revenue is projected to hit 20.5 percent - 21 percent of the GDP.