Russia’s Budget Deficit Surges to Nearly 5 Trillion Rubles

Russia’s federal budget deficit continues to grow rapidly, increasing by 1.2 trillion rubles in July alone.

As of the first seven months of 2025, the deficit has reached 4.9 trillion rubles, already exceeding the Finance Ministry’s full-year target of 3.8 trillion rubles.

Budget Breakdown (July):

• Revenue: 2.7 trillion rubles
• Expenditures: 3.9 trillion rubles (up from 3.2 trillion in June)

In the January–July period:

• Spending rose by 20.8%
• Revenue grew by only 2.8%, and when adjusted for inflation, real income actually declined

A key reason behind the widening gap is the collapse in oil and gas revenues, which dropped by 18.5% year-on-year, accelerating from 16.9% in the first half of 2025.

Due to this sharp decline, the Russian government is preparing to revise the federal budget for the second time this year. Adjustments are expected in September, alongside the proposed three-year fiscal plan.

Experts predict that the deficit could grow further — up to 5 to 9 trillion rubles by year-end.

As reported earlier, Ukraine’s sanctions chief Vladyslav Vlasiuk said Russia’s planned 2025 budget deficit was tripled in May — from 1.17 trillion to 3.8 trillion rubles, citing declining oil prices and sanctions as the main causes.