Russia’s budget deficit reached 2.5% of GDP since the start of the year. Kremlin says that’s no cause for concern.
Russia’s federal budget deficit reached 5.8 trillion rubles, or 2.5% of GDP, over the first eight months of 2026, according to a preliminary estimate from the Finance Ministry, one and a half times more than in the same period last year. Authorities had projected a full-year deficit of just 3.8 trillion rubles, or 1.6% of GDP.
The Russian federal budget deficit reached 2.5% of GDP in the first eight months of 2026, according to the Finance Ministry. This amount is more than double the projected 1.6% for the entire year. The government spent 31.7 trillion rubles, a 14.7% increase from the same period last year, while revenue grew by 9.2% to 25.9 trillion rubles.
The ministry attributes the increased spending to advance payments on state contracts made at the beginning of the year. The Kremlin downplays the growing deficit, stating it is "a moving figure" and that economic stability remains "absolutely assured." The ministry plans to borrow 5.5 trillion rubles on the domestic market for 2026, as higher borrowing rates in June and July led to the cancellation of three bond auctions.
The ministry also suggests that the budget deficit could be covered by budget reserves and asset sales.
Written by urgent.news from Meduza (English)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
