Russia succeeds in reducing its budget deficit than what was expected despite the pile of the sanctions imposed
Russia’s budget deficit at the end of 2023 is expected to be around 1% of its GDP, a decline from a previous forecast of 2%.
Russian Finance Minister Anton Siluanov linked this decline to achieving good revenues in the non-oil and gas sectors.
He explained, “The Russian economy is working, and growth rates allow us to talk about an increase in budget revenues”.
In the first ten months of this year, the budget deficit reached 1.235 trillion rubles ($13,942 Billion), equivalent to 0.7% of GDP.
In the same period last year, the deficit was 0.2% of the GDP.
It’s noteworthy that the 2023 budget includes a deficit of 2% of GDP, or 2.925 trillion rubles ($33,022 Billion).
In the first months of the year, Russia’s budget deficit rose significantly as a result of increased spending, raising questions about the proportionality of the planned budget deficit (2% of the GDP) with its actual performance.
Budget revenues began to rise after February 2023, with spending controlled, which contributes to achieving a result higher than the target set within the budget, amounting to 1% of the GDP.
