Russia's budget deficit increased by approximately 33 percent
The budget deficit to GDP ratio increased from 1.8 percent to 2.3 percent
Quick Look
- Russia's budget deficit in the January-October period increased by approximately 1.29 trillion rubles compared to the same period last year, reaching 5.23 trillion rubles.
- While budget revenues increased by 11 percent and expenses increased by 13.4 percent, oil and natural gas revenues decreased by 14.1 percent and the GDP ratio increased from 1.8 percent to 2.3 percent.
AI-generated summary
Why It Matters
Budget expenditures in Russia have increased significantly in recent years, especially due to expenditures on the defense industry.
In the statement made by the Russian Ministry of Finance, the country's leading budget data for the January-October period was included.
Accordingly, the budget deficit, which was 3.94 trillion rubles in the same period last year, increased by approximately 1.29 trillion rubles to 5.23 trillion rubles. Thus, the ratio of the budget deficit to gross domestic product (GDP) increased from 1.8 percent to 2.3 percent.
Budget revenues increased by 11 percent to 33.18 trillion rubles in the 10 months of the year compared to the same period last year, while expenses increased by 13.4 percent to 38.41 trillion rubles.
During the said period, oil and natural gas revenues decreased by 14.1 percent to 6.44 trillion rubles, while non-oil and natural gas revenues increased by 19.1 percent to 26.73 trillion rubles.
In the statement, it was stated that the budget deviated slightly from its structural balance targets due to the increase in expenditures for priority areas and the decrease in oil and natural gas revenues.
Budget expenditures in Russia have increased significantly in recent years, especially due to expenditures on the defense industry.
Open Questions
- It is not stated to what extent the budget deficit depends entirely on defense expenditures.
- Measures to be taken to eliminate budget imbalance have not been announced.
