Russia's First Quarter Budget Deficit Reaches $29 Billion Amid Falling Oil Revenues and Rising War Costs.
TL;DR
Russia's federal budget balance recorded a deficit of $29bn in Q1 2023 due to heavy spending to support its military campaign in Ukraine and a 45% fall in energy revenues. The government has set a target of a 2% GDP deficit for 2023, but analysts predict it will be closer to 4-5%. The widening deficit may lead to an increase in corporate tax burden and inflationary risks, and the central bank may raise interest rates from the current 7.5%.
Topics:businesseconomy#budget-deficit#economy#energy-revenue#military-campaign#russia#western-sanctions
- Russia swings to $29 bln first-quarter budget deficit Reuters
- Russia Races to Plug Budget Gap, as Oil Revenues Fall and War Costs Rise The Wall Street Journal
- Russia’s Finance Ministry reports first quarter budget deficit of 2.4 trillion rubles Meduza
- Falling Russian oil and gas revenue translates into big budget deficit Upstream Online
- Russian Budget Deficit Shrinks Even as War Drives Up Spending Bloomberg
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