Moscow - Russia will probably have to cut budget spending compared with previous plans, President Vladimir Putin was quoted as saying in an interview published on Wednesday.
Putin told US news agency Associated Press and Russia's First Channel said that such cuts may be needed because economic growth is likely to be below the forecasts used to calculate the budget, resulting in a shortfall in tax revenues.
“Now it's obvious that the forecast is a bit different. The economy is growing, but slower, revenues will be less, and that means we need to be more careful,” Putin said.
Last week Russia's Economy Ministry slashed the government's official economic growth forecast to 1.8 percent from 2.4 percent, as the economy struggles with weaker exports and consumption growth.
Putin said the government needed to make another forecast of economic development and revise its budget plans based on the new forecasts.
“I think it will be necessary to cut something,” he said. - Reuters