Russia's Federal Deficit Surges to USD81B Amid War Spending
The ministry's statement revealed that federal revenues inched up just 0.3% year-on-year to 14.78 trillion rubles between January and May, a marginal gain overshadowed by an explosive rise in state spending.
Expenditures climbed 17% to 20.79 trillion rubles over the same period, driving the deficit up by 98% to 6.01 trillion rubles — a fiscal gap that underscores the mounting financial strain on the Kremlin.
Energy revenues took a sharp hit, with oil and gas receipts plunging 29.8% to 2.98 trillion rubles, weighed down by depressed crude prices during the early months of the year. Non-energy revenues offered a partial buffer, rising 12.4% to 11.8 trillion rubles, though far from enough to offset the shortfall.
Defense-related expenditures have driven a sustained surge in state spending in recent years as Russia continues its military campaign in Ukraine. Compounding the fiscal pressure, Western sanctions on the Russian energy sector have severed a substantial share of the country's oil and gas exports to European markets, accelerating the decline in hydrocarbon income that Moscow has long relied upon to balance its books.
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