Russia Records Sharp Budget Gap in 2024

2025-01-23 09:42 By Luisa Carvalho 1 min. read

The Russian federal government posted a budget deficit of more than RUB 3 trillion in 2024, its widest fiscal gap since the Covid pandemic in 2020, according to preliminary figures.

Spending surged 24.2% yoy to RUB 40.2 trillion, largely due to elevated defense costs to finance the war in Ukraine and measures to support local businesses amid broad sanctions.

Meanwhile, revenues rose 26% to RUB 36.7 trillion, as accelerating inflation boosted a 26% rise in in non-oil-and-gas revenues to RUB 25.6 trillion and a 26% increase in oil and gas revenues to RUB 11.1 trillion.

As a share of GDP, the deficit decreased to 1.7%, compared to 1.9% in 2023, but was significantly wider than the ministry's initial plans for a deficit of 0.9%, or RUB 1.6 trillion.

Excluding crucial revenues from oil and gas, however, the shortfall increased to 7.3% of GDP from 7% in 2023.

Over three years of Russian-Ukrainian war, Russia’s cumulative budget deficit has reached RUB 10 trillion.



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