Russian President Dmitry Medvedev said Wednesday that he favors raising taxes on the gas industry to help close the country's budget gap.
But he also called for "responsible" budget policy and suggested Russia needs legal limits on the deficit and the role of oil and gas revenues in the budget. Such laws should be in place from 2015, he said, echoing his comments in St. Petersburg earlier this month.
About half of Russia's budget comes from oil and gas revenues, which leaves the government vulnerable to drops in prices and demand.
Increases in social spending and lower corporate payroll taxes should be offset by higher taxes on oil, natural gas, alcohol and tobacco, as well as from the sale of state assets, Medvedev said.
The state's share in the Russian economy, estimated at about 50%, should be decreased, Medvedev said. He added that the initial capital for a planned direct investment fund to put cash in domestic equity should come the budget.
Russia's budget deficit this year is expected to be below 0.5% of gross domestic product if crude oil prices average $115 a barrel, Finance Minister Alexei Kudrin said last week.