MOSCOW (Reuters) -Russia will borrow more than planned this year to cover the rising budget deficit, Finance Minister Anton Siluanov was quoted as saying on Tuesday, though high interest rates, a strong rouble and a shallow capital market are limiting its capacity.

The Finance Ministry increased the deficit estimate for this year from the initial 0.5% of gross domestic product (GDP) to 1.7%. As military spending to finance the war in Ukraine continues, the deficit is set to exceed this figure.

“Is it possible to increase the debt? Yes, on one hand, we will do it this year. I want to say right away that it will be within reason. These will not be any large imbalances for the budget,” Siluanov told RBC radio in an interview.

Russia’s new draft budget should be submitted to parliament for

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