Russia’s budget deficit seen at around 1% of GDP this year -finance minister

MOSCOW (Reuters) – Russia’s budget deficit will be around 1% of gross domestic product (GDP) this year, Finance Minister Anton Siluanov said on Wednesday, marking the latest improvement in Russia’s fiscal health as budget revenues increase.

Higher oil prices and increased tax payments have helped the Russian government narrow its budget shortfall, which early this year was threatening to be far wider, with some economists expecting a deficit of as much as 5% of GDP.

“Additional non-oil and gas revenues are coming in, the economy is working and growth rates allow us to talk about higher budget revenues,” Siluanov said.

The deficit for January-October stood at 1.24 trillion roubles ($13.82 billion), or 0.7% of GDP, the finance ministry said earlier this month. Russia’s 2023 budget plan envisages a deficit of 2.93 trillion roubles, or 2% of GDP.

($1 = 89.7230 roubles)