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Russia committed to fiscal rule despite recession risk - Medvedev

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(Globalpost/GlobalPost)

MOSCOW (Reuters) - Russia's government will stick to its adopted fiscal rule, despite risks of a recession, Prime Minister Dmitri Medvedev told the Lower House of Parliament on Wednesday.

"The decision is taken and it should be sharply executed," Medvedev told the Duma.

Since President Vladimir Putin returned to the Kremlin last year, the government has adopted a new fiscal rule that bases spending plans on the long-term average oil price and caps the budget deficit at one percent of GDP.

"This rule is very important in the period when in other countries...there is recession and ultimately, it may happen to us at the time when there is a risk of commodity prices falling," Medvedev said.

(Reporting by Darya Korsunskaya, writing by Maya Dyakina; editing by Megan Davies)

http://www.globalpost.com/dispatch/news/thomson-reuters/130417/russia-committed-fiscal-rule-despite-recession-risk-medvedev