Russia's budget posts $43.2B deficit amid falling oil prices

MOSCOW

Russia's budget posted a deficit of 3.4 trillion rubles (some $43.2 billion) in the first five months of the year due to falling oil prices, according to official figures released Tuesday.

Russia's Finance Ministry said the country's budget revenues rose 3.1% from the same period last year, reaching 14.7 trillion rubles in the first five months of the year.

But budget expenditures climbed 20.7% to 18.1 trillion rubles during the same period, it said, resulting in a budget deficit of 3.4 trillion rubles.

A ministry statement noted that non-oil and gas revenues amounted to 10.5 trillion rubles, while oil and gas revenues reached 4.2 trillion rubles.

The statement indicated that the budget deficit was 1.5% of GDP, citing various expenditures in January and falling oil and natural gas prices as the main reasons for the deficit.

Budget expenditures in Russia have risen significantly in recent years, particularly due to defense spending amid the ongoing Ukraine war.