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6.0 Budget and Debt
Main parameters of 2021-2023 federal budget
2020
2021
2022
2023
Revenues RUB trillion
17.9
18.8
20.6
22.3
Expenditures RUB trillion
22.6
21.5
21.9
23.7
Budget deficit RUB trillion
-4.7
-2.8
-1.2-1.4
-1.2-1.4
Budget deficit % GDP
-4.4
-2.4
-1.0-1.1
-1.0-1.1
State borrowing RUB trillion
4.4
2.9
2.1-2.4
2.1-2.4
Source: Ministry of Finance
6.1 Federal budget
Russia’s State Duma approved the 2025-27 federal budget in its final reading on November 22 that significantly boosts defence spending but cuts social payments and pensions for the first time since the war in Ukraine started.
In 2025, revenues will amount to RUB40.3 trillion, or 18.8% of GDP, and expenses will reach RUB41.47 trillion, or 19.3% of GDP. The deficit is expected to be at the level of RUB1.17 trillion.
Defence spending will account for 32.5% of the budget in 2025 – the highest share since Soviet times – the equivalent of 6.2% of GDP. Military spending overtook social spending for the first time ever in 2023.
This represents a sharp rise from 17% in 2022, the first year of the war in Ukraine, and 29.5% in 2024. In nominal terms, the government will spend RUB13.49 trillion ($138bn) on national defence in 2025, a 25%
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