Budget collapse in the Kremlin: the deficit has already exceeded the annual plan and continues to grow

According to a preliminary estimate by the Russian Ministry of Finance, the federal budget deficit increased by 1.2 trillion rubles in July and reached 4.9 trillion rubles in the first seven months. This is significantly more than the 3.8 trillion rubles planned for the entire year.

This is reported by The Moscow Times.

In July, budget revenues amounted to 2.7 trillion rubles, while expenditures reached 3.9 trillion rubles — more than in June, when they amounted to 3.2 trillion rubles.

Economists consider these figures to be very high, but the Russian Finance Ministry insists that spending is on schedule. After a sharp spike in January, when spending was 64% higher than last year, in the following six months it grew by only 15% compared to the same period in 2024.

In seven months, the Russian budget spent 25.2 trillion rubles, compared to the full-year plan of 42.3 trillion rubles. However, the traditional December spending surge is ahead.

During this period, Russian budget expenditures increased by 20.8%, while revenues increased by only 2.8%.

As a reminder, the Russian Central Bank, in a new macro forecast, admitted that economic growth in the Russian Federation could fall to zero by the end of 2025. This is perhaps the regulator’s most pessimistic forecast in recent years.

As reported, due to the rapid decline in oil and gas revenues and rising costs, the Russian government will make changes to the budget for the second time in a year.

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