Russia’s Budget Deficit Reaches 3.4 Trillion Rubles in 2021
According to a statement released by the Ministry of Finance of Russia, the country’s budget deficit reached 3.4 trillion rubles in the first four months of 2021. It was stated that there was a decrease of 22 percent in budget revenues compared to the same period of the previous year, which resulted in revenues of 7.8 trillion rubles, whereas budget expenditures increased by 26 percent to 11.2 trillion rubles.
Russia’s oil and natural gas revenues decreased by 52 percent to 2.3 trillion rubles during the January-April period compared to the same period of 2020. The statement pointed out that the high base effect was the main reason behind the decline. Last year, Russia’s budget had a deficit of 3.3 trillion rubles due to the sanctions.
To close the budget deficit, the Russian Ministry of Finance is selling yuan and gold from its reserves. This step puts Russia in a challenging position as the country heavily relies on its exports of oil and natural gas.
The COVID-19 pandemic and global economic slowdown affected the country’s budget deficit, and the situation continues to indicate challenges for the Russian economy. The Russian government is likely to take further measures to control the budget deficit and stabilize the economy in the coming months.