Russia’s public deficit could triple compared to the official target by the end of this year, with India’s decrease in oil purchases and the increase in oil trading discounts affecting revenues, while expenses could be higher than estimated, anonymous sources told Reuters.
The sources cite calculations by economists from an expert group with ties to the Government, data that was not intended for publication. This information is the latest indication of the pressures facing the Russian economy due to sanctions, high interest rates, and a labor shortage, Agerpres reports.
The calculations show a possible decline in energy revenues by 18% in 2026, compared to the Government’s plan, which would lead to a deficit between 3.5% and 4.4% of GDP, compared to a planned level of 1.6% of GDP. The estimates also indicate an increase in expenses between 4.1% and 8.4%.
Total budget revenues are expected to decrease by 6% compared to the planned level, to 37.900 trillion rubles ($494.78 billion). “The budget situation is significantly deteriorating. Revenues will be lower and expenses higher,” the sources claim.
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