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

(This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine)

MOSCOW (Reuters) – Prime Minister Mikhail Mishustin said on Tuesday Russia’s budget deficit would come in at 2% of gross domestic product in 2023 before narrowing to 0.7% in 2025.

In televised remarks, Mishustin said the budget gap would be covered mainly by borrowing. Last week, the Finance Ministry returned to local debt markets for the first time since Russia sent tens of thousands of troops into Ukraine, triggering unprecedented Western sanctions that have locked Moscow out of international debt markets.

Mishustin’s prediction that Russia would run a budget deficit for at least the next three years came just two weeks after President Vladimir Putin said Russia would post a surplus in 2022, contrary to most expectations.

Mishustin estimated government revenues of around 26 trillion roubles ($433.6 billion) versus outlays of 29 trillion roubles for 2023 ($483.7 billion).

The government deficit will come in at 1.4% of GDP in 2024, falling to 0.7% of GDP in 2025, Mishustin said.

($1 = 59.96 roubles)

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