National News

Russia publishes budget forecasts

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

Russia’s budget will be in deficit from 2023 to 2025, Prime Minister Mikhail Mishustin told a government meeting on Thursday.

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

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

Mishustin added that the government’s budgetary expenditure in 2023 will increase slightly to more than 29 trillion rubles ($485 billion) from this year.

The prime minister’s report follows an improvement in the economic outlook by Russia’s economy ministry on Wednesday. He said Russia’s GDP decline is expected to be much smaller than previously thought, both for this year and next. The ministry now sees the economy shrinking by 2.9% this year and 0.8% in 2023.

Russia’s economy is expected to grow by 2.6% in 2024-2025 due to strong domestic consumption and investment demand, Finance Minister Maxim Reshetnikov said.

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