The Central Bank of the Russian Federation forecasts a record budget deficit of $103 billion
The Central Bank of Russia forecasts that the federal budget deficit in 2026 could reach $103 billion, which would be the highest figure since the COVID-19 pandemic.
This was stated by Elvira Nabiullina, Chair of the Bank of Russia. According to her, the regulator has factored a primary structural deficit of 2% of GDP into its forecast, which increases the overall budget deficit to 3.6% of GDP.
According to estimates by the Central Bank of the Russian Federation, one of the main reasons for the deterioration of the budget situation is the rise in government spending. Earlier, Bloomberg reported that Russia’s additional war-related expenditures could amount to $52–65 billion, which would significantly increase the budget deficit.
Experts also note that, despite tax increases, budget revenues are growing more slowly due to the economic slowdown. In the first half of the year, the deficit had already reached about $73 billion, exceeding the level planned for the entire year.
Source: The Moscow Times.
Russia is seeing a trend toward staff reductions in various sectors, including IT, healthcare, logistics, manufacturing, retail, consulting, and other business services.
The Russian Ministry of Finance forecasts a sharp increase in regional budget deficits to $21 billion.
