Page 74 - RusRPTFeb23

product, and may exceed 2% again in 2023 as the price cap curbs Russia's
export revenues, Finance Minister Anton Siluanov said in December.
The government has already sharply increased the tax burden on the oil and
gas industry for 2023-2025, the biggest such rises in its history, as Russia's
10-month military operations in Ukraine grind on. The measures are expected
to net an additional 3.6 trillion roubles for the Russian budget over three years.
However, a Reuters budget analysis shows Moscow will spend a combined 9.4
trillion roubles ($140bn) on defence and security this year alone - nearly a third
of the budget - meaning less money for health, education and research.
Russia’s federal budget deficit reached a record 3.9 trillion rubles ($56bn)
in December. Although Russia enjoyed a surplus during the other 11 months
of last year, December’s figures brought Russia’s total budget deficit to 3.3
trillion rubles ($47bn) by the end of 2022.
government spending in
Russia often spikes at the end of the year. Prime Minister Mikhail Mishustin
the indicators “aren’t bad,” and Finance Minister Anton Siluanov
end-of-year deficit was “as planned.”
An increased deficit in December is not unexpected;
said said the
But the reason for the large December deficit was also 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 in the same month pushing down both prices and export volumes.
74 RUSSIA Country Report February 2023 www.intellinews.com