Page 69 - RusRPTNov22

6.1.1 Budget dynamics - results
The Russian Federal Government surplus narrowed to RUB55bn in the first nine months of the year, less than half of the cumulative amount in the previous month and 96% less than this year’s peak in April, as revenues tanked while spending increased due to Moscow’s war efforts.
Revenues for the Federal Government have declined sharply since energy revenues, the major contributor to Russia’s earnings, suffered a sharp setback as Europe started to transition away from Russian oil and the Kremlin halted natural gas exports in retaliation to sanctions. On top of that, oil and natural gas prices have significantly fallen from their respective peaks.
Expenditures are seen 19% higher than the corresponding period of the prior year and twice as much as growth in planned budget revenue. Consequently, Moscow allocated half of its $210bn rainy-day fund to finance its looming budget deficit.
The year-on-year slippage of the nominal income of the federal budget moderated to four percent in September, which was due to various income items other than oil and gas tax income. However, in the last three-month period, revenues were 14% lower than a year ago. The slippage was more or less the same in oil and gas tax revenues and in other budget revenues.
The increase in the nominal expenditures of the federal budget accelerated again in September and was more than 30% year-on-year. For the last three months, the annual increase in expenses was more than 20%, i.e. quite a lot in real terms, when the increase in consumer prices and producer prices for
69 RUSSIA Country Report November 2022 www.intellinews.com