OREANDA-NEWS. On July 08, 2009 Finance Minister Kudrin said federal budget expenditures accounted to 40% of full-year planned spending, or RUB3.9 tln., reported the press-centre of OTKRITIE Financial Corporation.

View: We believe this is a positive development, suggestive of an acceleration in fiscal spending. In June, RUB770bn of the federal budget was spent, up from the RUB578bn spent in May, and also an increase from the RUB630bn average for 5M09.

While the June expenditure included a one-off RUB100bn VEB capital injection, we still see an acceleration in fiscal spending as the key mechanism for supporting the economy.