Russian budget deficit increases by 1.5 times per month

The Russian federal budget deficit has grown in the first seven months of 2024 compared to the previous month’s rates, owing to higher expenditure and reduced income.

Source: The Moscow Times, with reference to the message of the Russian Ministry of Finance 

Details: According to the study, the budget deficit for January-July was 1.36 trillion roubles, or 0.7% of the country's GDP.

The data over six months show that expenses outpaced revenues by 929 billion roubles. This represents 0.5% of Russia's GDP.

At the same time, the budget deficit remains over half that of the first seven months of 2023, when it was 2.6 trillion roubles, or 1.5% of GDP, following Western sanctions imposed in reaction to Russia's full-scale invasion of Ukraine, which resulted in a dramatic drop in Russia's energy income.

Background: Due to restrictions imposed on the local financial system, Russian governmental institutions and state-owned firms are having difficulty paying salaries to personnel abroad.

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