Reuters: Russia's Budget Deficit Is Growing
1- 3.09.2026, 23:24
Putin pretends that everything is under control.
Russia's budget deficit is rapidly increasing amid massive spending on the war against Ukraine, but Putin maintains that the situation does not pose a serious threat to the economy, according to the news agency Reuters.
From January through July, Russia’s budget deficit grew by approximately 40% and reached 2.8% of GDP. Meanwhile, the Russian government’s official plan for all of 2026 calls for a deficit of only 1.6% of GDP, according to Reuters.
Speaking at an economic forum in Vladivostok, Putin stated that Russia is capable of coping with the growing financial shortfall thanks to its relatively low public debt.
“There’s nothing critical here,” Putin said, attempting to downplay the problem of Russia’s growing budget deficit.
However, economic difficulties are intensifying. The protracted war is demanding ever-greater expenditures, the authorities are raising taxes and increasing borrowing, and economic growth is slowing. Ukrainian strikes on Russian infrastructure, including oil refineries, are exerting additional pressure.
“The attacks have already led to fuel shortages, rising prices, and losses for businesses. At the same time, the Russian Central Bank’s key rate stands at 14%, which seriously complicates companies’ access to credit,” the authors write.
Putin acknowledged that financial conditions in the country have become tight, but insists that they are not excessively harsh.
The war is becoming increasingly costly for Russia—expenses are rising, the budget is running short of funds, and the financial shortfall has already significantly exceeded the Kremlin’s projections.
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