Russia has a record budget deficit due to military spending

Russia is facing growing financial problems due to the war in Ukraine. Military and security spending is already exceeding budgets, and the budget deficit is rapidly growing.

The Financial Times writes about this.

It is noted that the Russian Finance Ministry has warned the government that additional war spending this year could reach at least 2 trillion rubles. In the worst case, the amount could double.

This has led the Russian government to look for ways to cut spending. Finance Minister Anton Siluanov has proposed freezing some funding for other government programs this year.

“Military spending is putting increasing pressure on the Russian budget, so the government is forced to review other spending items,” analysts note.

Almost 40% of Russia’s federal budget is currently spent on defense and security, yet the budget deficit in the first months of the year has already hit a record high since the start of a full-scale war.

Experts say that the topic of lack of money is becoming increasingly prominent for both the Russian government and business.

“There is already active discussion within the country about which areas may fall under the next funding cut,” the publication writes.

It is also reported that Russian ministries have previously been instructed to cut “non-essential” expenses, while they are still trying not to reduce funding for the army and social benefits.

As a reminder, Renat Suleimanov, a deputy of the Russian State Duma from the Communist Party of the Russian Federation, stated that the Russian economy may not be able to withstand a prolonged war against Ukraine.
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