PM says Russia’s budget deficit planned at 2% of GDP in 2023

MOSCOW, Sep 20 (PRIME) -- Russia’s budget deficit will amount to 2% of gross domestic product (GDP) or around 3 trillion rubles in 2023, Prime Minister Mikhail Mishustin said on Tuesday at a meeting of the government’s budget commission.

“Budget revenue is estimated at around 26 trillion rubles next year. … Spending is estimated at around 29 trillion rubles, the budget deficit amounts to 2% of GDP or 3 trillion rubles in absolute figures,” he said.

The budget will have a deficit of 1.4% of GDP in 2024 and of 0.7% in 2025, he said.

The government submitted the 2023–2025 federal budget draft to President Vladimir Putin on Monday.

The deficit will be covered mainly with borrowing in the next three years, Mishustin said, adding that the Finance Ministry placed 9-year OFZ government bonds last week, with demand exceeding the offer by almost two and a half times, “which allows us to move forward.”

The borrowing approach will allow the government to maintain an acceptable level of sovereign debt without spending money from the National Wealth Fund, he added.

The budget rule will be in force for the next three years, he said. The draft budget includes a transition period for 2023 and 2024 when spending will be higher than revenue by 2.9 trillion rubles and 1.6 trillion rubles, respectively, Mishustin also said.

(60.1662 rubles – U.S. $1)

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