Putin stated that the Russian Federation's budget deficit is not critical
Russian President Vladimir Putin stated that the country’s federal budget deficit remains non-critical. He made this remark on September 3 during the Eastern Economic Forum in Vladivostok. According to the Russian president, the government is striving to pursue a prudent fiscal policy and avoid placing an excessive burden on the banking system.
Putin noted that Russia has one of the lowest levels of public debt in the world, which is why, in his view, the current budget situation is not critical. He also emphasized that the government is trying to avoid excessive government borrowing, especially borrowing that could put additional pressure on private banks.
At the same time, actual Russian budget figures indicate a significant increase in the deficit. In the first seven months of 2026, the federal treasury’s shortfall reached 6.46 trillion rubles, which amounts to about 2.8% of GDP. This figure is 40% higher than the deficit for the same period last year and is already 1.7 times greater than the amount the Russian authorities had projected in their annual plan.
Putin also commented on the fight against inflation. He called for preventing an excessive slowdown in the Russian economy and stated that the government and the Central Bank appear to be successfully maintaining a balance between curbing inflation and supporting economic activity.
However, German Gref, CEO of Russia’s largest bank, Sberbank, previously stated that the Russian economy is already in a state of “overcooling.” After several years of growth exceeding 4%—largely driven by massive government spending amid the war against Ukraine—the Russian economy’s growth rate slowed to approximately 1% in 2025.
According to data for the first seven months of 2026, Russia’s economic growth stood at just 0.6%. Since last year, Putin has regularly demanded that the government restore high rates of economic growth and launch a new investment cycle.
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