Page 64 - Russia OUTLOOK 2023

4.0 Budget & Debt

Main parameters of 2021-2023 federal budget

2020 2021 2022 2023

Revenues RUB 17.9 18.8 20.6 22.3
trillion

Expenditures 22.6 21.5 21.9 23.7
RUB trillion

Budget deficit -4.7 -2.8 -1.2-1.4 -1.2-1.4
RUB trillion

Budget deficit % -4.4 -2.4 -1.0-1.1 -1.0-1.1
GDP

State borrowing 4.4 2.9 2.1-2.4 2.1-2.4

RUB trillion

Source: Ministry of Finance

• Federal budget 2022-2025

Russia spent around RUB5 trillion ($78bn) on the war in Ukraine in 2022
and the main budgetary issue for 2023 is how to fund at least the same
spending. Among other options, the Ministry of Finance intends to issue
RUB3.5 trillion of OFZ domestic bonds to cover the bulk of the spending. It can
also tap the National Welfare Fund for additional funds, but it is using its rainy
day reserve sparingly, as the war could go on for several years and the
ministry wants to keep something in reserve.

The Russian budget deficit in December 2022 increased by RUB400
trillion compared to forecasts and exceeded RUB3 trillion. The reason was
due to a fall in oil revenues following the entry into force of the European oil
embargo and the oil price cap scheme for Russian oil pushing down both
prices and export volumes.

64 Russia OUTLOOK 2022 www.intellinews.com