A massive hole has opened up: Russia’s federal budget deficit continues to grow
7 June 11:17
Russia’s federal budget deficit is growing—according to preliminary data from the Russian Ministry of Finance, the budget shortfall reached 6 trillion rubles, or 2.6% of GDP, over the first five months of the year. This was reported by "Komersant Ukrainian" citing Russian propaganda media.
The figure is twice as high as the level for the same period last year and 1.6 times higher than the annual plan, which is set at 3.79 trillion rubles, or 1.6% of GDP.
The day before, Russian Finance Minister Anton Siluanov reiterated that the budget deficit in 2026 would “increase slightly” compared to the plan, promising that this would not lead to a significant increase in domestic borrowing.
Non-oil and gas revenues have risen by 12.4% year-over-year since the start of the year, reaching 11.8 trillion rubles. At the same time, total revenues rose by only 0.3%, amounting to 14.8 trillion rubles due to a nearly 30% drop in oil and gas revenues.
Expenditures accelerated their growth on an annual basis, increasing by 17.0% to 20.8 trillion rubles and reaching 47.2% of annual allocations. The 2026 budget law provides for a 2.7% increase in expenditures compared to last year.
Siluanov made it clear that achieving a zero primary deficit in the Russian Federation’s federal budget, as required by the budget rule, has been postponed again and will not occur before 2029.
In response,Alexei Zabotkin, Deputy Chairman of the Central Bank of the Russian Federation, warned that a later transition of the budget to a primary balance (excluding debt service costs) could adjust the trajectory of the central bank’s key rate.
Last year, the budget deficit was nearly five times higher than the government’s initial plan, reaching a record high since 2020 as a percentage of GDP—5.7 trillion rubles, or 2.6% of GDP.
The Ministry of Finance intends to adjust the parameters of the 2026 federal budget without public discussion of the amendments in parliament.
Watch us on YouTube: important topics – without censorship
