Russia’s Budget Deficit Surpasses Annual Target Amid Economic Concerns
By the end of July, Russia’s federal budget deficit surged to 4.9 trillion rubles ($61.4 billion), exceeding the government’s full-year target by over 30%. This increase is largely attributed to reduced oil prices, which significantly impacted revenues. While expenditures grew substantially, outpacing revenue growth, leading to a decline in real terms. Several experts attribute the economic challenges to sanctions and trade disruptions, while some suggest the falling oil revenues could potentially impact Russia’s ongoing war efforts.
John Q. Hosedrinker