Page 74 - RusRPTFeb24

Stable public finances will allow authorities to go through with their plan to dramatically expand military spending. The government aims to spend 10.7 trillion rubles (~$100 billion) on the military in 2024 (+68% vs. last year)
Russia's federal budget deficit posted RUB3.2 trillion ($36bn) in 2023 making 1.9% of GDP and missing the target set by the Finance Ministry by RUB300bn, according to the latest ministry’s data. In December FinMin Anton Siluanov assumed that the budget could outperform and post a 1.5% GDP deficit. However, the deficit is still in line with the 2% target and remained stable as compared to the 2.1% deficit seen in 2022 when the full-scale military invasion of Ukraine was launched. However, with a planned increase in military spending in 2024 and likely social spending boosts ahead of the presidential election are likely to further strain the fiscal position. The budget deficit missed the target due to spending being 11% higher than expected, while oil and gas taxes declined by 24% to RUB8.8 trillion and amounted to almost a third of all revenues in 2023. In December, oil and gas revenues dropped to RUB650.5bn, from RUB962bn in the previous month. This compares with a Reuters forecast of RUB719bn.
After exceeding $18 billion in September-October, Russian oil export earnings fell to $14.4 billion in December. At the same time, the weaker ruble is still supporting budget revenues from oil extraction taxes and export duties.
74 RUSSIA Country Report February 2024 www.intellinews.com