Russia's 2003 budget surplus was 1.7 percent of gross domestic product (GDP) beating the official target for the year, TASS news agency quoted Prime Minister Mikhail Kasyanov as saying on Tuesday.
Russia had targeted a surplus of 0.6 percent of GDP for 2003 but raised it to 1.1 percent as buoyant oil and commodities exports helped to fill the state coffers.
"The budget revenue target was exceeded and made 101 percent. Thus the budget surplus made 1.7 percent of gross domestic product," Kasyanov was quoted as saying during a meeting with President Vladimir Putin.
The government plans to put part of last year's budget surplus to a stabilisation fund designed to absorb excessive money supply when prices for oil - Russia's key export item - are high and cover revenue gaps if prices for crude oil fall.
Russia's 2004 budget provides for a 83.4 billion rouble ($2.83 billion) surplus or 0.5 percent of GDP. Russia ended 2002 with a budget surplus of 1.4 percent of GDP.
Kasyanov also said that 2003 inflation fell to 12 percent last year hitting the higher end of the official target. Russia was aiming to trim inflation to 10-12 percent in 2003 from 15.1 percent the year before.
Russia is targeting annual consumer price inflation of 8.0-10.0 percent in 2004, which would be the country's lowest since the collapse of the Soviet Union.
The International Monetary Fund has called on officials to aim at the lower end of that range by tightening fiscal policy and allowing a more flexible rouble exchange rate.
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