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Russia runs budget deficit as defence spending rises
The deficit reached 3.3 trillion rubles ($47 billion), or 2.3 percent of gross domestic product, Finance Minister Anton Siluanov told a government meeting.
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Russian President Vladimir Putin gives a speech during the Victory Day military parade at Red Square in central Moscow on May 9, 2022. Russia celebrates the 77th anniversary of the victory over Nazi Germany during World War II. (AFP/Mikhail Metzell)
R
ussia swung from a budget surplus to a deficit last year, officials said Tuesday, as authorities boost defence spending amid Moscow's assault on Ukraine.
The deficit reached 3.3 trillion rubles ($47 billion), or 2.3 percent of gross domestic product, Finance Minister Anton Siluanov told a government meeting.
Russia ran a budget surplus in 2021.
Siluanov said that compared to 2021, state spending increased by more than six trillion rubles, adding that the expenses "were mainly aimed at helping the population."
The Russian government has allocated funds to support the families of troops fighting Ukraine, as well as companies hit by a partial military mobilisation announced in September.
Last year revenues surpassed government estimates by 2.8 trillion rubles, Siluanov said.
He said that additional revenues came from the sale of oil and gas due to an increase in energy prices after the beginning of the offensive on February 24.
The deficit for 2023 is forecast to amount to two percent of the GDP.
Analysts estimate that Russia plans to spend about a third of its total budget on defence and security this year.
Russia has been forced to draw on its rainy day fund and borrow heavily at domestic debt auctions in recent months as it diverts more funds towards security and defence.
Siluanov also acknowledged late last month that a Western price cap on Russian oil could widen the budget deficit in 2023.
