Roseconomy Slides Into The Abyss Faster Than Expected
2- 7.07.2025, 19:45
- 9,486
The budget deficit is breaking records.
Russia's economy continues to plunge into crisis: the country's federal budget deficit for the first six months of 2025 reached 3.69 trillion Russian rubles, or almost 47 billion dollars. This amounts to 1.7% of GDP, Reuters reports (translation - dialog.ua), citing data from the Russian Finance Ministry.
Thereby, in six months, the Russian economy has reached the annual limit of the budget deficit, which was previously forecast at the same 1.7% of GDP.
For comparison, for the same period in 2024 the deficit was only 0.3% of GDP, and for the first five months of this year it was at 1.5% of GDP. In fact, the current rate of deficit growth shows that by the end of 2025 Russia may exceed the planned figures several times over.
Expenses are growing noticeably, revenues are falling
The main reason for the rapid growth of the budget hole is a sharp increase in expenditures against the background of economic stagnation. In six months, budget expenditures grew by 20.2%, while revenues rose by only 2.8%.
The fall in revenues from the sale of energy carriers - by 17% compared to the first half of 2024 - has hit especially hard.
Oil and gas traditionally remain the main item of filling the Russian budget, and the decline in their prices on the world market hurts the economy of the country, which is waging war against Ukraine.
In April, the Ministry of Finance of the Russian Federation was forced to raise the forecast of the budget deficit for the whole 2025 from 0.5% to 1.7% of GDP, while reducing the expected revenues from oil and gas by a quarter. The ministry said at the time that the reason for this decision was the prolonged period of low energy prices and the risk of their further decline.
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