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Russia cuts non-war spending 35% as budget deficit hits 2.8% of GDP

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Russia cuts non-war spending 35% as budget deficit hits 2.8% of GDP

Russian Finance Minister Anton Siluanov warned Prime Minister Mikhail Mishustin that federal budget funds may be insufficient for timely payments. The federal budget balance on the treasury account fell to a negative 5.5 trillion rubles ($65.3 billion). Officials then introduced austerity measures, cutting non-war spending by 35%.

Key Facts

  • The federal budget balance on the treasury account fell to a negative 5.5 trillion rubles ($65.3 billion).
  • Non-war spending was cut by 35%, including state sector and military salaries, social programs, regional aid, and national debt payments.
  • Federal agencies were ordered to prepare for a 15% staff reduction and defer all non-essential spending.
  • Russia's budget deficit reached 6.5 trillion rubles ($75.5 billion), or 2.8% of GDP, against a planned 1.6%.
  • Bloomberg sources said the situation is not yet critical and Russia can finance the war for several more years.

Budget Warning

Finance Minister Anton Siluanov warned Prime Minister Mikhail Mishustin that federal budget funds may be insufficient for timely payments. The federal budget balance on the treasury account fell to a negative 5.5 trillion rubles ($65.3 billion). Bloomberg reported that officials then introduced austerity measures.

Spending Cuts

Non-war spending was cut by 35%, including state sector and military salaries, social programs, regional aid, and national debt payments. Federal agencies were ordered to prepare for a 15% staff reduction and defer all non-essential spending. Russia's budget deficit reached 6.5 trillion rubles ($75.5 billion), or 2.8% of GDP, against a planned 1.6%.

Outlook

The Finance Ministry's internal assumption suggests the situation may worsen further by the end of 2026. Bloomberg sources said the situation is not yet critical and Russia can finance the war for several more years.

1 source

Russia cuts non-war spending 35% as budget deficit hits 2.8% of GDP

uza.uz

UzA (Uzbek State News)