Page 63 - RusRPTDec20

6.1.1 ​Budget dynamics - results
Russia recorded a government budget deficit of 1800.37 RUB Billion in October of 2020.
In the third quarter, the consolidated budget generated 14% less revenue than a year earlier ​(the consolidated budget covers the budgets of the federation, regions and municipalities, and state social funds). The year-on-year decline in revenue was much smaller than in the second quarter (-23%), excluding the one-off central bank surplus account entered in the budget in April as a result of Sberbank's change of ownership.
The increase in consolidated budget spending, which began last year, has continued throughout this year. Expenditure in the third quarter was almost 12% higher than a year ago, although the annual growth rate was lower than in the previous two quarters (17-18%). Expenditure growth has continued to dampen the contraction in the economy, with inflation remaining relatively subdued.
The large cross-movement of revenue and expenditure has increased the consolidated budget deficit. The deficit widened over the last 12 months to around 3.5% of GDP in June, to an estimated 4.5% for the whole of this year (without the Sberbank account, the 12-month deficit would have been around 4.5% of GDP). The growing budget deficit was financed in the spring by government accounts and borrowing, but in late summer and autumn the
63 ​RUSSIA Country Report​ December 2020 www.intellinews.com