Russia’s budget began to post deficits as of August and expenditures exceeded tax revenues, the country’s economic development minister said on Wednesday. Addressing the Federation Council, the upper house of the Russian parliament, Maxim Reshetnikov said the Russian economy is expected to narrow 2.9% this year. Touching on the inflation issue, he said the annual inflation hit a record high of 17.8% in April but it is expected to fall to 12.4% at the end of this year. The real income of Russian citizens will decrease 2% this year and rebound 2% in 2023, he predicted. “We expect the Russian ruble exchange rate to weaken compared to its current level,” he said, adding: “But we anticipate that the ruble exchange rate will be 10-15% stronger over the next five years compared to the past five years.”