Russia’s Budget Deficit in 2024

(Reuters) – Russia recorded a budget deficit of more than 3 trillion roubles for the third consecutive year in 2024, according to the finance ministry’s report on Monday. This deficit comes as both spending and revenue have increased significantly compared to 2023, driven by economic investments in the ongoing war in Ukraine.

The preliminary estimate indicates an overall deficit of 3.49 trillion roubles (approximately $34.39 billion). Total revenues rose by 26% year on year to reach 36.71 trillion roubles, while spending grew by 24.2%, amounting to 40.19 trillion roubles.

The deficit has narrowed as a percentage of gross domestic product (GDP), decreasing to 1.7% from 1.9% in the previous year, according to the data.

Moscow anticipates that this year’s spending will increase to 41.47 trillion roubles, with 41% allocated to the military, police, and secret services. Increased tax revenues are projected to reduce the fiscal deficit to 0.5% of GDP.

(Exchange rate: $1 = 101.4955 roubles)