According to journalists, in 2023 the federal budget deficit of Russia will be 3-4% of GDP.
Russia’s budget deficit jumped in the first two months of the year, but spending grew at a slower pace. Thus, the deficit reached 2.58 trillion rubles (34 billion dollars) with expenditures in the amount of 5.74 trillion rubles. Bloomberg writes about it.
Journalists suggest that although the budget of the Russian Federation is heavily unprofitable, the Russian Ministry of Finance is striving to keep the deficit for the year within the target.
Economist Alexander Isakov said the main reason for the decline in the deficit is a 15 percent drop in government spending after extremely large spending in the first month of the year.
“However, it will be difficult for Moscow to balance its books as domestic sovereign bond yields soar above 11% and non-oil revenues continue to decline,” he said.
At the same time, as journalists stated, in 2023 the federal budget deficit of Russia will be 3-4% of GDP.
The publication writes that the sanctions and other restrictions imposed by the United States and its allies against Russia in connection with the invasion of Ukraine, hit hard on the country’s income from energy exports. Thus, this month, non-energy revenues fell by 9%, which is less than the 28% drop in January.
Earlier it was reported that Russia supplies large consignments of oil to the UAE. The Arab countries of the Persian Gulf are dissatisfied with the pressure of the United States, which demanded that they isolate the Russian Federation and produce more oil, so they agree to cooperate with the aggressor country.
We also recall that the expert named the main factor for the collapse of the Russian economy. The economic recession in Russia began in 2022, and negative phenomena will continue throughout 2023. Experts believe that the price of oil, which depends on the decisions of OPEC, will have a serious impact on the decline in economic activity in the Russian Federation.
