Ammon News - Russia's federal budget spending and deficit could exceed official plans by more than 1 trillion roubles ($12.85 billion) in 2026, according ​to the data from the government's budget portal.

The outlet, which ‌aggregates information from the finance ministry and federal treasury, did not give a reason for the increase, although Russia's military spending is on the rise due ​to the war with Ukraine.

The projection comes as the central bank ​considers whether to continue cutting its key interest rate or ⁠keep it unchanged at next week's policy meeting. The Bank ​of Russia has repeatedly identified a wider budget deficit as a major ​inflationary risk.

According to the data, federal spending is projected to reach 45.11 trillion roubles in 2026, compared with 44.07 trillion roubles in the budget law.

Projected revenue remains ​unchanged, at 40.28 trillion roubles, implying a budget deficit of 4.83 ​trillion roubles, versus 3.79 trillion roubles, or 1.6% of the gross domestic product, ‌currently ⁠assumed by the budget.

Russia's budget deficit was 5.73 trillion roubles, or 2.5% of GDP, in the first half of the year, finance ministry data showed, 1.7 times higher than in the same period a year ​earlier.

Finance Minister Anton ​Siluanov has said ⁠the deficit would increase "somewhat" compared with the official target, while pledging this would not significantly increase domestic ​borrowing.

The budget gap also remains higher than previously planned ​over ⁠the following two years. The finance ministry has postponed achieving a zero primary budget deficit, as required under Russia's fiscal rule, until 2029.

In 2025, ⁠Russia's ​budget deficit exceeded the official target almost ​fivefold, reaching 5.7 trillion roubles, or 2.6% of GDP, the highest level since the pandemic ​year of 2020.


Reuters