The cumulative budget deficit of Russian regions is projected to reach 1.478 trillion rubles in 2025, marking a 3.6-fold increase compared to the previous year, according to calculations by the ACRA rating agency, as reported by Kommersant.
This significant deficit is attributed to regional expenditure growth outpacing revenue increases by more than double. In 2025, regional revenues are expected to total 22.6 trillion rubles, while expenditures are projected at 24.1 trillion rubles.
In 2024, the regional budget deficit was recorded at 407 billion rubles, indicating that the 2025 figure represents a historic high since monitoring began.
Earlier this week, Russian Prime Minister Mikhail Mishustin stated that he, along with President Vladimir Putin and Central Bank Governor Elvira Nabiullina, had engaged in extensive discussions regarding solutions to the budget deficit. For 2025, the federal budget deficit is estimated at 5.64 trillion rubles, equivalent to approximately 2.6% of GDP, which is five times greater than the initial target of 0.5%. The deficit for 2026 is projected at 3.786 trillion rubles, or 1.6% of GDP.
The regional budget deficit in Russia has reached a historic high, driven by expenditure growth that significantly exceeds revenue increases. This trend raises concerns regarding fiscal sustainability as discussions continue among top government officials on addressing the issue.
Source: Кommersant