Russia issues budget forecast

The country is expected to run a deficit next year which would be covered by government borrowing, the prime minister says

The Russian budget will be in deficit from 2023 to 2025, Prime Minister Mikhail Mishustin said at a government meeting on Thursday.

“During the entire period, the budget will be in deficit, the main source of its coverage will be government borrowing,” he explained.

The prime minister also estimated total government revenues in 2023 at over 26 trillion rubles (over $435 billion), noting that “in nominal terms this is less than this year, but significantly more than in the previous year, when the economy was affected by the COVID pandemic.” 

Mishustin added that government budget outlays in 2023 will slightly increase to over 29 trillion rubles ($485 billion) when compared to this year.

The PM’s report follows an improved economic outlook by the Russian Economy Ministry on Wednesday. It said the decline in Russia’s GDP is expected to be much lower than previously thought, both for this year and the next. The ministry now sees the economy contracting by 2.9% this year and by 0.8% in 2023.

Russia’s economy is expected to expand by 2.6% in 2024-2025 due to robust domestic consumer and investment demand, finance minister, Maxim Reshetnikov said.

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