US EditionRussia’s Budget Deficit Blows Past Annual Target in Just 7 Months
RUSSIA, AUG 8 – Russia's deficit reached 97% of its 2025 target by July due to 19% lower energy revenues and rising government spending, risking depletion of financial reserves, analysts say.
- Russia's federal budget deficit reached 4.9 trillion rubles by the end of July 2025, surpassing the annual target of 3.8 trillion rubles.
- This deficit growth results from a decline in oil revenues, sanctions, economic isolation, and increased military spending amid rising inflation.
- July expenditures rose to 3.9 trillion rubles while revenues were 2.7 trillion rubles, with oil and gas revenues falling nearly 19% year-on-year.
- The Kremlin must cut spending by nearly 20% in real terms for the rest of 2025 to meet targets, yet an 8 trillion ruble deficit is still expected by year-end.
- The mounting deficit and economic slowdown foreshadow a possible recession as Russia depletes reserves and struggles with labor shortages and investment constraints.
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Russia's Finance Ministry said Thursday that the state budget deficit reached 4.9 trillion rubles ($61.4 billion) in July, up from 2.58 trillion rubles ($34 billion) in March.
Russia's federal budget deficit continues to grow rapidly. So, in July it increased by 1.2 trillion rubles. and at the end of seven months amounted to 4.9 trillion rubles - and this is much more than planned at the end of the whole year (3.8 trillion rubles).
Russia’s Budget Deficit Surges Beyond Annual Goal in Only Seven Months – EUROP INFO
Russia’s budget deficit has surged well beyond its planned annual limit in just seven months, signaling mounting fiscal pressures amid ongoing economic challenges. According to recent data, the government’s shortfall has expanded at an accelerated pace, raising concerns about Moscow’s ability to balance its finances by year-end. This unexpected budgetary strain arrives against the backdrop of persistent international sanctions and fluctuating en…
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