Russia’s Jan-July budget deficit stood at 3.3% of GDP

Russia’s Jan-July budget deficit stood at 3.3% of GDP
Russia's federal budget deficit in 7M16 was 3.3% GDP but the gap is shrinking.
By bne IntelliNews August 16, 2016

Russia’s federal budget deficit will almost certainly exceed the 3% of GDP limit that President Vladimir Putin called for at the start of the year, after the gap for the first seven months of this year came in at RUB1,521 trillion or 3.3% of GDP, the finance ministry reported on August 15.

Both revenue generation and spending were running slightly behind the plan laid out in the budget law, but the gap between the two has narrowed considerably in recent months.

Budget revenues amounted to RUB6.967 trillion, or 50.7% of total revenues planned for the year; expenditure was RUB8.488 trillion, or 52.2% of the planned total spending. That led to a primary deficit of RUB1.187 trillion or 2.6% of GDP. The value of Russia's GDP in the first seven months was RUB45.423 trillion ($708.2bn).

The volume of oil and gas revenues received in the budget was behind the plan at RUB2.554 trillion, or 42.2% of the forecast for 2016; however, thanks to improved VAT collection and the ongoing reform of tax administration non-oil revenues are running head of plan at RUB4.413 trillion over the first seven months, or 57.4% of the annual forecast.

In July, the federal budget deficit was relatively small at RUB92.2bn on revenue of RUB1.098 trillion and expenses RUB1,190 trillion.

The state has already started winding down military spending, but is expected to splurge on social spending ahead of parliamentary elections this September. All in all the, the finance ministry is short of about RUB2 trillion from a budget that assumes a total of RUB15.8 trillion of spending this year.

 

Data

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss