Two-thirds of Russia's regions have a budget deficit
The number of regions with budget deficits in Russia has risen sharply—by the end of the first quarter of 2026, budget shortfalls were recorded in 56 of the 89 federal subjects, accounting for approximately two-thirds of the country.
By comparison, 46 regions had deficits during the same period in 2025, and only 6 in the first quarter of 2022—that is, before the start of the full-scale war against Ukraine.
In addition to the increase in the number of regions facing financial difficulties, budget deficits are also deepening. The number of regions with high deficit levels (over 10% of revenue) rose to 35, compared to 23 a year earlier.
The worst situation in terms of the deficit ratio is observed in:
- the Jewish Autonomous Region — 50.5%
- Kemerovo Oblast — 50%
- Vologda Oblast — 32.9%
- The Komi Republic — 32.7%
In monetary terms, the largest budget “holes” were recorded in:
- Kemerovo Oblast — 21.3 billion rubles
- Khanty-Mansi Autonomous Okrug — 20.3 billion rubles
- Krasnodar Krai — 19.9 billion rubles
- Irkutsk Oblast — 17.4 billion rubles
- Moscow Oblast — 15.2 billion rubles
Experts note that the widespread deterioration of the budgetary situation in Russia’s regions intensified after 2022, when a full-scale war against Ukraine began. Since then, the number of regions running deficits has been steadily increasing, as has the severity of their financial shortfalls.
The situation indicates growing imbalances in Russia’s regional budgets and an increasing burden on the country’s financial system.
This is evidenced by an operational report from the Accounts Chamber of the Russian Federation.
The Russian government has been forced to return massive sums of money from the budget to oil companies amid refining problems following a series of attacks on refineries. In just a few months, payments have reached hundreds of billions of rubles, significantly impacting budget revenues and the oil sector’s balance.
Russia’s spending on the war against Ukraine this year significantly exceeds planned figures, and the budget can no longer withstand the strain. Estimates suggest that additional costs could reach at least $28 billion, creating a serious deficit in the Russian Federation’s finances.
