Russia’s federal budget deficit surged sharply last month, reaching a record high and surpassing the previous record set during the COVID-19 pandemic in 2020.
According to data from the Russian Ministry of Finance, the financial deficit in the first 7 months of this year reached 4.9 trillion rubles, equivalent to 61.8 billion dollars—an increase of 3.8 billion dollars over the deficit targeted by the government for the entire year.
Growing Financial Deficit
Despite a 3% annual increase in overall revenues during the first seven months of the year, expenditures rose by more than 20%.
Since the start of Russia’s war on Ukraine in 2022, the country has increased its annual financial deficit to meet growing military needs.
