Russia’s Budget Gap Widens Sharply as Energy Revenues Decline
Figures released by the Russian Ministry of Finance indicate that federal revenues increased only marginally, rising by 0.3% to 14.78 trillion rubles over the five-month period. In contrast, government spending rose much more rapidly, climbing 17% to 20.79 trillion rubles. As a result, the overall deficit jumped by 98% to 6.01 trillion rubles.
A major factor behind the widening gap was a steep drop in energy income. Oil and natural gas revenues fell by 29.8%, totaling 2.98 trillion rubles, largely attributed to lower global oil prices earlier in the year. Meanwhile, non-energy revenues showed stronger performance, increasing by 12.4% to 11.8 trillion rubles.
Government expenditure has been on an upward trajectory in recent years, with defense-related spending playing a central role in the increase. At the same time, international sanctions targeting Russia’s energy sector have reduced its access to key European markets, contributing to ongoing pressure on oil and gas earnings.
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