The Russian economy is bursting at the seams: the budget deficit has tripled

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.

This was reported in The Moscow Times.

The Russian Ministry of Finance has already reduced the revenue plan by $20 billion, while increasing expenditures by $800 billion. As a result, the projected budget deficit of the Russian Federation has tripled to $42 billion, or 1.7% of GDP.

The Russian government is currently updating its forecast and preparing a three-year budget. Amendments to the budget are planned to be made by September 30.

Although specific changes are not yet known, analysts are confident that the Russian budget deficit will only grow. After all, in the period January-July 2025, revenues from raw materials fell by almost 20% compared to last year and have been declining for the third month in a row.

Previous changes increased total budget expenditures to $470 billion, but now the “electronic budget” system already shows a figure of $477 billion.

According to analysts’ forecasts, the Russian budget deficit could grow to $100 billion by the end of the year.

Earlier,US President Donald Trump said that Russia has 10 days to reach an agreement on the war in Ukraine . If it refuses, Washington will impose new economic restrictions, including tariffs against buyers of its oil.

As a reminder, US President Donald Trump announced the introduction of new tariffs for India : from August 1, the country will have to pay 25%. He explained that India buys most of its military equipment from Russia and, together with China, is one of the largest consumers of Russian energy.

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