Russian federal budget deficit narrows 37.5% to 1.474 trillion rubles or 0.8% of GDP in 2M - MinFin

MOSCOW. March 7 (Interfax) - The Russian federal budget deficit narrowed 37.5% to 1.474 trillion rubles or 0.8% of GDP according to preliminary estimates in January-February 2024 from 2.379 trillion rubles or 1.4% of GDP in the same period of last year, the Finance Ministry said in a press release.

Budget revenues rose 59% to 5.025 trillion rubles, from 3.164 trillion rubles a year previously.

Non-oil and gas revenues grew 55% from a low base at the start of last year to 3.405 trillion rubles.

Growth for non-oil and gas revenues was also driven by one-off non-tax revenues, including payments from auctions for fishing quotas, the ministry said.

Non-oil and gas revenues for 2M 2024 were generally in line with budget projections. Oil and gas revenues rose 71% year-on-year to 1.621 trillion rubles, due mainly due to higher prices for Russian oil, as well as a one-time oil mineral extraction tax surcharge for Q4 associated with changes in legislation regarding the reimbursement of excise duty on petroleum feedstock.

Oil and gas revenues exceeded their base volume: according to the socio-economic development forecast, oil and gas revenues are also expected to remain steadily above their baseline level in the coming months.

Federal budget expenditures rose 17% to 6.499 trillion rubles in 2M 2024, from 5.543 trillion rubles a year previously.

Some acceleration of financing expenses in February 2024 was partly due to the prompt conclusion of contracts and advance financing for individual contracted expenses.

Russia had a federal budget deficit of 124 billion rubles for January 2024 with revenue of 2.397 trillion rubles and spending of 2.521 trillion rubles.

It follows that the February deficit was 11 times higher than the January deficit at 1.35 trillion rubles due to 58% growth in spending to 3.978 trillion rubles with just 10% growth in revenue to 2.628 trillion rubles.