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New budget boosts long-term stability

Overview

Russia's new three-year 2008-10 budget breaks new ground in more ways than one. The three-year horizon focuses the attention of policy makers and the markets on the economic transition facing Russia, from a world of ever rising oil prices and external windfalls to a world of relative stability in global oil and commodity markets.

More importantly, though, the new budget introduces a completely new framework for managing fiscal policy. The new fiscal structure goes a long way to...

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