Russian Consolidated Budget’s Surplus Reaches $7.5bn In January-February Revenues of Russia’s consolidated budget in January-February 2012 amounted to RUR2.9474tn ($97.5bn, or €75.5bn) and expenses equalled RUR2.7215tn ($90bn, or €69.7bn), according to a financial statement posted on the Russian Treasury’s website. This means that the consolidated budget had a surplus of RUR225.9bn ($7.5bn, or €5.8bn) for the specified period. The federal budget had a deficit of RUR199.6bn in January-February.

The consolidated budget of Russianregions was executed with a surplus of RUR73.6bn. Revenues totalled RUR874.8bn and expenses RUR801.2bn. Budgets of state extra-budget funds were executed with a surplus of RUR319.2bn and of territorial state extra-budget funds with a surplus of RUR32.9bn. (FC Novosti)

Although m_o_m inflation accelerated in March, in y_o_y terms it has remained well below 4% for quite a while. We have anticipated steady disinflation amid the ongoing evolution of the Central Bank’s monetary policy, as the bank has significantly scaled back forex market interventions and has stopped accumulating reserves in large increments. Generally, we have expected and still expect inflation to remain in the mid_single digits as ruble volatility has increased, limiting the scope of speculative capital inflows. A moderate rise in budgetary spending (as is the case so far) is another necessary precondition for keeping inflation at bay. However, unprecedented low m_o_m inflation in January (0.5%) – which was only partially due to the tradition of regulated tariff hikes every January being broken – was unexpected. This year the government postponed indexation until July to appease the electorate ahead of the presidential election.

Russia's transformation from central planning to a market-based economy over the past 20 years must rank as one of the biggest economic stories of our time, according to a new book on the rise of Russian capitalism. The authors – all economic and finance professionals who have invested in the nuts and bolts of the Russian transformation – demonstrate why the positive economic achievements of the last 20 years should be more widely recognized in the West.

World Bank Launches its 27th Russian Economic Report

Russia’s latest economic performance has been robust, in spite of the fact that output growth is slowing this year in line with weaker growth in Europe and in a number of emerging economies, says the World Bank’s Russian Economic Report №27 launched this week in Moscow. The report analyzes the country’s recent economic developments and prospects. Special focus is on the invitation to Russia to accede to the WTO by the summer of 2012 - a unique and important opportunity for the country’s economic development.