MOSCOW: Russia’s finance ministry is sticking with plans to post a budget deficit of no more than 2% of gross domestic product (GDP) in 2023, despite towering spending and slumping energy revenues contributing to a huge shortfall in January.

Russia recorded a budget deficit of almost $25 billion in January, in part due to falling oil and gas revenues, the lifeblood of Russia’s economy.

That led analysts to forecast a budget deficit as wide as 5.5 trillion roubles ($73.2 billion), equivalent to 3.8% of GDP, unless prices for Russian oil recover.

“The main thing is to look at the budget balance, which will be formed at the end of the year,” Finance Minister Anton Siluanov said in an interview broadcast on Rossiya 24 on Friday. “And for the end of the year, our plan is 2% of GDP, no one has cancelled it, and these parameters will be maintained.”

It was a clear signal that Moscow intends to keep fiscal spending in check.

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A deficit larger than planned would require a mix of higher foreign currency sales, lower spending, more borrowing or tax rises.

Russia is already selling 8.9 billion roubles ($124.5 million) worth of foreign currency per day to cover the deficit and the government last week floated the idea of a one-off “voluntary” tax on big business.