Russia completed 22Y with a budget deficit of 2.3% of GDP

(Details added)

MOSCOW, Jan 10 (Reuters) – Russia’s federal budget ran a deficit of 3.3 trillion rubles, or 2.3% of GDP, last year, Finance Minister Anton Siluanov said.

The final result was even higher than the Ministry of Finance predicted in December.

Based on the operational data of the single portal of the budget system, budget revenues amounted to 27.77 trillion rubles, expenses – 31.11 trillion rubles.

Spending traditionally peaked in December, but spending is up 43% compared to December 2021. It follows from operational data that the Ministry of Finance spent 6.89 trillion rubles in the last month of the year, or 22.1% of all expenditures over the past year.

Incomes in December rose to 2.99 trillion rubles from 2.64 trillion rubles in November. Thus, the monthly deficit in December reached a record 3.9 trillion rubles.

Prior to Moscow’s “special military operation” in Ukraine, a surplus of 1.33 trillion rubles, or 1% of GDP, was included in the 2022 budget law.

In October, after a significant increase in defense spending and social payments, the Ministry of Finance predicted a hole in the treasury at the end of 2022 at the level of 1.3 trillion rubles, or 0.9% of GDP, but two months later, the department doubled the deficit estimate to about 2% of GDP.

Siluanov explained the increase in the budget deficit in 2022 by the transfer of part of the expenses of 2023.

The Ministry of Finance covered the hole in the treasury at the expense of state borrowings and funds from the National Wealth Fund (NWF). A big help, thanks to which the deficit did not become even larger, was the increased taxes and interim dividends of Gazprom, which transferred about 2 trillion rubles to the treasury at the expense of the MET and profits.

The Ministry of Finance is planning a deficit budget for the entire next three years. The draft federal budget for 2023 was drawn up with a deficit of almost 3 trillion rubles, or 2% of GDP. (Daria Korsunskaya. Edited by Oksana Kobzeva)

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