Russia Government Budget Widens in January-August

The Russian federal government recorded a budget shortfall of RUB 5.8 trillion in January-August 2026, or 2.5% of the GDP, up from RUB 3.9 trillion in the same period a year ago, according to preliminary estimates. The figure remains well above the full-year target of RUB 3.8 trillion, equivalent to 1.6% of GDP. Federal expenditures climbed by 14.7% year-on-year to RUB 31.724 trillion, while revenues rose by just 9.2% to RUB 25.929 trillion. Non-oil-and-gas revenue climbed by 18.1% to RUB 20.9 trillion, partly offsetting a 16.7% decline in oil and gas revenue to RUB 5 trillion. Russia posted a budget surplus of RUB 660 billion in August, its biggest monthly surplus in a year, according to Bloomberg calculations based on Finance Ministry data, driven in part by dividend payments from state-owned banks and companies.

The Russian federal government ran a budget deficit of RUB 5.73 trillion in January-June 2026, or 2.5% of the GDP, larger than RUB 3.39 trillion in the same period a year ago, according to preliminary estimates. Federal expenditures jumped by 16.1% year-on-year to RUB 24.35 trillion, while revenues rose by 5.8% to RUB 18.62 trillion.

The Russian federal government posted a budget deficit of RUB 6.01 trillion in January-May 2026, or 2.6% of the GDP, up from RUB 3.03 trillion in the same period a year ago, according to preliminary estimates. This marked the largest budget gap since at least 1996, as federal expenditures soared by 17% year-on-year to RUB 20.79 trillion while revenues rose by only 0.3% to RUB 14.78 trillion.