russian budget deficit has reached such volumes that the authorities are forced to admit it
russian ministry of finance has reported that in just five months of this year, the state budget deficit amounted to 3.4 trillion rubles, which is 1.5% of the country’s GDP. This is five times more than last year. It is forecasted that by the end of the year, the “hole” in russia’s state budget will significantly exceed the amount initially planned during the budget preparation.
The colossal expenses for the war against Ukraine and the decline in oil and gas revenues continue to “eat away” russia’s budget. In search of new sources of war financing, kremlin is raising taxes, duties, and excise taxes. A significant portion of the national welfare fund’s money has already been spent.
Due to kremlin’s unwillingness to end the war against ukraine, russia’s economy continues to deteriorate, and the budget is becoming increasingly deficit-ridden, which will affect the standard of living for ordinary russians.
