At the same time last year, Russia had recorded a surplus of 415 billion rubles.
Its federal budget deficit of Russia expanded to 2.58 trillion. ruble in the first two months of the year as Moscow sharply increased spending amid falling oil and gas revenues, the finance ministry said today.
Russia’s economy proved unexpectedly resilient in the face of Western sanctions last year, but a return to pre-war Ukraine levels may be a long way off as more government spending goes to the military and price caps squeeze revenue from crucial energy exports .
Oil and gas revenues were 46.4 percent lower at 947 billion rubles in the January-February period compared to the same period last year, according to preliminary finance ministry data, with total budget revenues down have decreased for the month by 24.8%.
Spending was 51.5% higher in the first two months of 2023, at 5.74 trillion. rubles. At the same time last year, Russia had recorded a surplus of 415 billion rubles.
The finance ministry stopped publishing monthly figures on budget execution last year. Today’s data show the monthly budget deficit narrowed to 821 billion rubles in February from a record 1.76 trillion. rubles recorded in January
Deficit containment may ease market concerns about tighter monetary policy. The central bank has warned that a further widening of Russia’s budget deficit could force it to raise interest rates from current levels of 7.5%.
The central bank will set the next rate hike on March 17.
Moscow depends on oil and gas revenues — last year it was around $11.6 trillion. rubles– in order to finance budget spending and was forced to start selling international foreign exchange reserves in order to cover a deficit widened by the cost of the war in Ukraine.
Russia has so far managed to redirect oil exports from Europe, mainly to India, China and Turkey, which have rushed to buy cheap oil, despite the $60-a-barrel ceiling decided by the Group of Seven industrialized nations. countries (G7) on Russian crude.
The data also show that Russia has managed to sell oil above the Western price ceiling, softening the impact of the restrictions.
Source :Skai
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