The aggressor country Russia ended 2024 with a record budget deficit, which reached 3.5 trillion rubles.
Points of attention
- Russia's oil and gas revenues increased, but did not reach the expected level, which increased the budget deficit.
- Fighting the deficit involves increasing taxes, which can lead to higher prices and make the lives of Russians worse.
- In recent years, Russia's total budget deficit has reached 10 trillion rubles.
Russia's problems on the economic front are escalating
What is important to understand is that the aggressor country is ending the third year in a row with a budget deficit.
This time it is about almost 3.5 trillion rubles (about 35 billion US dollars).
Analysts point out that this is a record figure for the entire period of Russia's full-scale war against Ukraine.
The Russian Finance Ministry hopes to reduce the budget gap by raising taxes, which always leads to higher prices. That is, ordinary Russians will once again have to pay for the Kremlin dictator's aggressive ambitions, the Center for Countering Disinformation emphasizes.
In addition, it is noted that at the end of the year, the enemy Ministry of Finance's expenditures exceeded the plan by 800 billion rubles.
This time they reached 40.2 trillion rubles — it is worth noting that this is a quarter more than in 2023.
What exactly is killing the Russian economy?
According to economists, these consequences were caused by accelerated inflation at the end of the year, which made it possible to increase non-oil and gas budget revenues to 25.6 trillion rubles — 26% more than a year earlier.
What is important to understand is that, thanks to the budget rule, these funds were directed to cover expenses.
Oil and gas revenues also increased by 26%, to 11.1 trillion rubles, but fell short of the expected level, which increased the deficit by 200 billion rubles, to 3.5 trillion rubles.
In recent years, Russia's total budget deficit has reached 10 trillion rubles.
In addition, it is noted that relative to GDP, the indicator decreased to 1.7% compared to 2.1% and 1.9% in previous years.
