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MOSCOW, March 19 (Reuters) - Russia should not rush to print money to cover its budget deficit, Prime Minister Vladimir Putin said on Thursday, in remarks that could stall the central bank's plans to prevent a further decline in foreign exchange reserves. Putin told a government meeting Russia should cover its 2009 budget deficit, seen at 7.4 percent of gross domestic product, through its own reserves or, should the need arise, by taking loans. He added that Russia had no need to borrow at present. "To resort to the help of the printing press would not be sensible and simply dangerous," Putin told the meeting.
"If we print more money than we produce goods, any solid economist will be able to tell you the result -- an increase in prices," he said.
The central bank said last month it would print around an extra 3.2 trillion roubles to cover this year's budget deficit. [ID:nLI202621] (Reporting by Toni Vorobyova, writing by Robin Paxton)