Russia's budget deficit mostly because of accelerated execution of expenditures, spending on defense - Putin

ST. PETERSBURG. June 16 (Interfax) - The current federal budget deficit is largely because of accelerated spending execution in the first months of the year, as well as additional appropriations for defense and the purchase of weapons, Russian President Vladimir Putin said in a statement.

"Our public finances are generally balanced today. There is a small current federal budget deficit, though it is largely owing to moving planned spending to an earlier date, 'to the left', as we say, according to the schedule. We have knowingly taken this step in order to boost the pace of implementing state and regional programs," Putin said at the St. Petersburg International Economic Forum (SPIEF) 2023.

"Naturally, additional funds were needed to strengthen defense and security, to purchase weapons. We are obliged to do this to protect the sovereignty of our country. I must say that this justifies itself on the whole, including from an economic point of view," Putin noted.

According to Putin, non-oil and gas revenues grew 9.1% in January-May, and the rate was +28% in May.

"This concerns budget revenues that are not related to oil and gas imports, and this is an important indicator that the real sector of the economy, manufacturing enterprises, the trade and services sector, are developing and gaining momentum," he said.

"We have always said when we will get off the oil and gas 'needle', but this trend is gradually gaining momentum," Putin said.

According to preliminary data from the Finance Ministry, the Russian federal budget was executed at a deficit of 3.411 trillion rubles in January-May.

An overall deficit of around 2.9 trillion rubles is planned for the year.