Bank of Russia Warns Budget Pressures Will Force Spending Cuts

Russia will eventually need to cut some spending as a budget gap threatens to surpass official plans and reserves continue to dwindle, the central bank said.

The Bank of Russia warned of lower-than-projected revenue and spending that appears poised to overshoot targets in its medium-term guidelines for monetary policy released Tuesday. Taken together, that could push this year’s deficit to top the planned 1.7% of gross domestic product.