Russia's budget deficit increases to over $55B

By Emre Gurkan Abay

MOSCOW (AA)— Russia's budget deficit reached 4.3 trillion rubles (approximately $55.7 billion) in the first 11 months of the year due to rising spending.

The Russian Ministry of Finance announced that the country's budget revenues increased by 0.7% in the first 11 months of the year compared to the same period last year, reaching 32.9 trillion rubles.

The statement noted that budget expenditures increased by 12.5% to 37.2 trillion rubles during the same period.

The statement also noted that non-oil and natural gas revenues totaled 24.9 trillion rubles, while oil and natural gas revenues totaled 8 trillion rubles.

The statement stressed that the budget deficit as a percentage of GDP is 1.6% and that this ratio is expected to reach 2.6% by the end of this year.

Russia's budget expenditures have increased significantly in recent years, particularly due to spending on the defense industry.

Sanctions targeting the Russian energy sector have also led to the country losing significant access to European oil and natural gas markets.