Russia's budget deficit has exceeded the annual target

• The budget deficit of Russia for the first seven months of 2025 reached 54 billion US dollars.
• Expenditures increased by 20.8%, while revenues grew only by 2.8% compared to the previous year.
• It is expected that a recession in the Russian economy may begin as early as 2026.

This is reported by Ukrayinska Pravda, RBC Ukraine.

The federal budget deficit of Russia continues to grow rapidly, having already exceeded the established annual target.

Source: The Moscow Times, citing previous estimates from the Ministry of Finance of Russia.

Details: In July, the deficit increased to 1.2 trillion rubles (approximately 15 billion US dollars), which raised the total amount for the first seven months of 2025 to 4.9 trillion rubles (approximately 61 billion US dollars) – significantly more than the annual target of 3.8 trillion rubles (approximately 47 billion US dollars).

In July, revenues amounted to 2.7 trillion rubles (approximately 34 billion US dollars), while expenditures reached 3.9 trillion rubles (approximately 49 billion US dollars), which is higher than usual indicators.

Economists consider these figures significant, but the Ministry of Finance of Russia asserts that expenditures are in line with the plan. After a sharp increase in expenditures in January, when spending was 64% higher than in the previous year, expenditures continued to rise over the following six months and were only 15% higher compared to July-August 2024.

Throughout the first seven months, Russia spent 25.2 trillion rubles (approximately 317 billion US dollars) against an annual plan of 42.3 trillion rubles (approximately 533 billion US dollars). However, the traditional budget deficit is still lower.

The increase in expenditures compared to the previous year was 20.8%, while revenues grew only by 2.8%.

Note: The Central Bank of Russia previously stated that economic growth in the country may be achieved by the end of 2025. A full-scale recession in the Russian economy is expected as early as 2026.

Tags: Russia/Economy