Russian federal budget deficit at 3.4% of GDP in H1 - Mishustin

MOSCOW. Aug 28 (Interfax) - The Russian federal budget deficit in the first half of 2025 amounted to 3.4% of GDP, Prime Minister Mikhail Mishustin said at a government meeting discussing the results of budget execution in January-June.

This is twice as high as the Finance Ministry's preliminary estimate for the half-year and the planned deficit for the entire year (both indicators are 1.7% of GDP).

This deficit for H1 is related, in particular, to the deferral of revenues, Mishustin said.

Budget revenues amounted to over 17.5 trillion rubles, exceeding the same indicator for the previous year and forecast values, Mishustin said. The share of non-oil and gas revenues already accounted for around 73%, with the role of those sectors where added value is higher than in raw material extraction expanding.

Expenditures rose by 1.4 trillion rubles, Mishustin said, noting that the budget execution indicator is the highest in the last five years. "More resources were allocated to the development of areas significant for our country's citizens - education, culture, healthcare, housing and communal services, as well as to support industry, innovation, energy, transport and agriculture," he said.

According to the preliminary estimate published by the Finance Ministry in July, the budget deficit amounted to 3.694 trillion rubles or 1.7% of GDP in H1 2025, against a planned deficit for 2025 of 3.792 trillion rubles or 1.7% of GDP, as per the budget law taking into account the amendments adopted in the spring.

Budget revenues in January-June were estimated by the Finance Ministry at 17.585 trillion rubles, up 2.8% compared to 2024, while expenditures stood at 21.278 trillion rubles (+20.2%).

The ministry linked the current level of the budget deficit mainly to the advanced financing of expenditures in January, as well as a decrease in oil and gas revenue receipts.

It was reported that non-oil and gas revenues in January-June amounted to 12.85 trillion rubles (+12.7% year-on-year), while oil and gas revenues totaled 4.735 trillion rubles (-16.9%, primarily due to a decline in the average oil price).

According to data published by the Federal Treasury in August, the federal budget deficit in January-June amounted to 4.444 trillion rubles, with revenues of 16.537 trillion rubles and expenditures of 20.981 trillion rubles.