Slumping energy revenues and soaring expenditure pushed Russia’s federal budget to a deficit of 1.76 trillion roubles ($24.78 billion) in January, as sanctions and the cost of Moscow’s military campaign in Ukraine choke the economy’s prospects.
Citing preliminary data, Russia’s finance ministry said on Monday oil and gas revenues were 46.4% lower at 426 billion roubles in January than in the same month last year, which it put down primarily to lower prices for Russia’s Urals blend and lower volumes of natural gas exports.
Non-oil and gas revenues were 28% lower at 981 billion roubles, attributed to lower domestic VAT and income tax takings.
Overall, budget revenues for the month were down 35.1%, while spending was 58.7% higher in January 2023, at 3.12 trillion roubles, already more than 10% of the full-year spending plan.
Moscow relies on income from oil and gas – last year around 11.6 trillion roubles – to fund its budget spending, and has been forced to start selling international FX reserves to cover a deficit stretched by the cost of the Ukraine conflict.
This report’s information was first seen on REUTERS; to read more, click this link.
