Russia has set an anti-record: the country's budget deficit has soared sixfold in a year
Russia's budget deficit in the first half of 2025 reached 3.7 trillion rubles ($47 billion), or 1.7% of GDP, which is more than six times higher than in the same period in 2024. This is evidenced by preliminary estimate of the RF Ministry of Finance.
In the second quarter, the country's budget deficit grew by 78% compared to the first and became a record in recent years.
The Moscow Times notes that the main reason for this gap is the collapse of Russia's oil and gas revenues and rising costs.
The Ministry of Finance has already spent half of the annual budget – 21.3 trillion rubles ($270 billion) out of the planned 42.3 trillion rubles ($540 billion), but has collected only 17.6 trillion rubles ($220 billion) out of the expected 38.5 trillion rubles ($490 billion).
Currently, the annual deficit has almost reached the annual plan of the RF Ministry of Finance (3.8 trillion rubles). Initially, the government expected a three times smaller deficit – only 1.2 trillion rubles ($15 billion) .
Despite a 17% drop in oil revenues, Russia's other revenues grew by 13%. However, experts doubt that the positive dynamics will continue due to the overall economic slowdown and inflationary pressure.
Of particular concern is the value added tax (VAT), which is considered an indirect indicator of economic activity. VAT revenues grew by only 7-9%, much less than last year's over 21%.
- For the first time since January 2023, Russia's revenues from oil and gas sales have fallen below 500 billion rubles per month. In June, they amounted to 494.8 billion rubles.
