Russia’s budget deficit reached 3.4 billion rubles (40.9 billion euros) in the first four months of the year, beating the forecast for 2023, mainly due to the drop in oil and gas revenues.
According to data released this Wednesday by the Russian Ministry of Finance, revenues totaled 7.8 billion rubles (93.1 billion euros) between January and April, 22.4% less than in the same period of 2022.
In contrast, spending rose 26.3% to 11.2 billion rubles (134.1 billion euros) in the first four months of the year, according to the ministry led by Anton Siluanov.
The budget was hit by a 52.3% year-on-year decline to 2.3 billion rubles (27,309 million euros) in tax revenue from Russian oil and gas, the target of international sanctions over the invasion of Ukraine.
The finance ministry explained in a statement that the drop is “associated with a high comparison base last year, a drop in Ural oil prices and a decline in natural gas exports.”
However, the Russian government states that “the monthly dynamics of oil and gas revenues are gradually entering a stable trajectory that corresponds to the baseline level”: eight billion rubles (95.7 billion euros) per year.
In Russia’s 2023 budget, the state’s projected deficit was set at 2.9 billion rubles (35 billion euros), or 2% of gross domestic product (GDP).
Last week, Anton Siluanov said he still does not plan to change budget execution benchmarks in 2023, although he did not rule out deviations for better or for worse.
“So far these benchmarks haven’t changed, but to say that [o défice] will be exactly 2% [do PIB] is to give wrong estimates. There may be deviations in one direction or the other. Let’s see what happens to oil and gas revenues,” said the minister.
Source: DN
