Putin ramps up expenditure amid record budget shortfall

Russian leader Vladimir Putin has signed a law revising the country's 2025 budget parameters.

Source: Kremlin-aligned Russian news agency RIA Novosti

Details: The revision provides for an increase in spending by RUB 829 billion [approx. US$10.58 billion].

This move comes amid a record deficit in the Russian budget.

Background:

• In January-February 2025, Russia's federal budget ran a deficit of RUB 3.8 trillion (approximately US$48.5 billion).
• In April, Russia's federal budget deficit reached RUB 1.05 trillion (US$13 billion) after a surplus in March.
• In 2025, the Russian budget deficit may increase to 2.2% of GDP, or 4.4 trillion Russian rubles (US$55 billion).
• Forced discounts on Russian oil, driven by tighter US sanctions and a sharp strengthening of the rouble, have cut into the Russian budget's revenues from raw materials.

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