Russian authorities have spent over 8 trillion rubles ($90 billion) in just two months, resulting in a budget deficit reaching 1.3% of GDP — twice as large as what was initially planned for the entire year.
While Russia continues to assert its ability to wage war indefinitely, the country is grappling with significant economic issues. The Center for Countering Disinformation reports that Russia’s financial situation is deteriorating. In the first two months of the year, government revenues failed to cover expenditures, with the deficit for the month alone standing at 1.3% of GDP, a figure much higher than expected.
The primary cause of this imbalance is the pre-financing of military contracts, pointing to rapidly increasing war-related expenses. The Russian government claims that the situation will stabilize, but analysts from major Russian corporations predict that the deficit will be much larger than officially acknowledged.
Despite the Kremlin’s claims of being able to continue its military campaign without end, the growing budget deficit highlights deepening problems in the Russian economy.
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