In the estimation of the Russian Finance Ministry, the surplus of the federal budget 2004 is expected to be RUR 505.7bn (about $17.36bn), instead of the planned RUR 83.4bn (about $2.86bn), a source in the government told RBC. He was speaking before attending a cabinet meeting where the allocation of additional revenues would be discussed.

Budget revenues are expected to be RUR 3.274 trillion, RUR 531bn more than planned. And expenditures are expected to rise to RUR 2.768 trillion, RUR 108.6bn more than projected.

According to the sourc

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e, these impressive results were mainly due to a favorable situation on export markets. He said the Finance Ministry expected profit tax revenues to be RUR 22.6bn higher than planned, and natural gas excise tax revenues were expected to be RUR 19bn more than projected.

Interest payments on the public debt would be RUR 41bn less than planned, and other budget expenditures would be RUR 149.6bn more than planned, the source said.

According to him, allocations to the Stabilization Fund are expected to be RUR 397.4bn, RUR 313.9bn more than planned. The Stabilization Fund was about RUR 106bn at the start of 2004.

rbc