Russia’s budget deficit narrowed in March as energy revenues increased
The Russian Ministry of Finance announced on Monday that the budget deficit during the first three months of the year amounted to 607 billion rubles, ($6,543,460 billion), and represents 0.3% of the gross domestic product.
This performance was supported by a strong increase in energy revenues compared to last year.
Oil and gas revenues witnessed an increase of 79.1% year-on-year, and this came despite the pressures imposed by Western sanctions on Russia as a result of the events in Ukraine, as these sanctions included setting a ceiling on oil prices and banning its purchase.
Russia’s budget this year is expected to see a significant increase in revenues and expenditures, with the deficit in the first two months of the year reaching 1.47 trillion rubles, ($15,846,600 billion) or 0.8% of GDP.
Since Russia’s invasion of Ukraine in February 2022, the Russian government has directed more resources to the military and defense industries, increasing spending on defense and security to about 40% of total expenditures in this year’s budget.
Current figures show a 53.5% increase in revenues compared to the same period last year, which enhances Russia’s financial stability in light of the current economic and political challenges.
