Russia’s budget deficit hits $79 billion in seven months, already 1.7 times annual target
Russia’s federal budget swung back into deficit in July after a brief surplus in June, as government spending continued to grow faster than revenue. The accumulated deficit for the first seven months of 2026 has already significantly exceeded the government’s full-year target.
Russia's federal budget deficit surged to $79 billion over the first seven months of 2026, surpassing its annual target by 1.7 times. Government spending outpaced revenue, with July alone seeing a deficit of $8.7 billion. Revenue totaled $42.4 billion, while spending reached $51.1 billion. From January to July, revenue amounted to $268.3 billion, while spending totaled $347.2 billion, resulting in a cumulative deficit of $78.9 billion.
This deficit, equivalent to 2.8% of GDP, is 1.7 times the government's target of 3.8% of GDP, or $46.1 billion. June was the sole month with a surplus, but July reversed the trend with increased spending and declining revenue. The rapid increase in government expenditure, attributed to the signing of government contracts and advance financing, has outpaced income.
Russian authorities are revising budget parameters, with projected spending rising from $535.4 billion to $547.5 billion, while revenue remains unchanged. This growing deficit, primarily driven by lower oil and gas revenue and deteriorating corporate finances, poses significant challenges to Russia's financial stability.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
