Russian Deputy Finance Minister, Tatyana Nesterenko, has announced that the country’s budget deficit could reach 10% of GDP.

As demand for the country’s exports continues to fall along with commodities prices, Nesterenko explained that budget revenues are to fall short by 800 billion roubles, compared to expectations.

Following the approval of the new 2009 crisis budget, Nesterenko revealed that this revised budget may not even be met. She said, “we see significant risks for the fulfillment even of the revised 2009 budget…There is a risk of [revenue] shortfall of 800 billion roubles for the year.”

Nesterenko, noting macro-economic indicators, stated, “if we spend another 800 billion roubles from the Reserve Fund that is very dangerous.”

The government has tried to boost the economy with high spending of $121 billion, which has come from the Reserve Fund. This is expected to cover the budget deficits to the middle of 2011.

The current expectation for a deficit of 8% of GDP may worsen to 10% in certain circumstances such as above-forecast inflation, a deeper recession and the inability to borrow.