Russian budget to comply with fiscal rule by 2025 - Siluanov

MOSCOW. Sept 11 (Interfax) - The Russian Finance Ministry expects the federal budget will comply with the fiscal rule by 2025.

"A responsible approach to finance will be maintained for the coming years. The budget takes into account the normalization of fiscal policy. The structural deficit will gradually decrease as the fiscal rule parameters are reached in 2025," Finance Minister Anton Siluanov in a commentary released by the press service on Monday.

The federal budget is being formed as economic activity grows more dynamically than previously predicted, the commentary notes. The economy will grow more than 2% for the year.

The current budget law targets a deficit of about 2.9 trillion rubles or 2% of GDP for 2023. A budget deficit of 2.193 trillion rubles or 1.4% of GDP is projected for 2024 and a deficit of 1.264 trillion rubles or 0.7% of GDP for 2025.

Russia's federal budget deficit was 2.361 trillion rubles or 1.5% of GDP in January-August 2023, according to preliminary data from the Finance Ministry. Russian Prime Minister Mikhail Mishustin said at a meeting on the draft budget for 2024 and the 2025-2026 planning period on Friday that there had been a surplus of 230 billion rubles in August, but his figure was probably based on adjusted data for January-July. "Our steady path of positive changes means we can expect a federal budget with a deficit at initial forecast level of 2% of GDP for the year," Mishustin said.

Russian federal budget revenues this year are in line with the upper end of forecasts, particularly for non-oil and gas revenues, Kremlin aide Maxim Oreshkin told Interfax later. As a result, the budget deficit in 2023 will not exceed the forecast 2% of GDP and might even be lower, while in 2024 there might be a surplus in certain scenarios, Oreshkin said.