Page 70 - RusRPTNov23

energy. Russia’s entire Arctic region, stretching from Murmansk Port close to Norway in Russia’s European North-West to the Russian Far East has been declared a Free Trade Zone and is the world’s largest. Vladivostok also contains shipbuilding facilities, an extensive free trade zone, and is the home to the Eurasian Diamond Centre, which has become one of the world’s largest, servicing Diamonds and other gems mined from Yakutia. It is a significant player in the Asian gem trade.
6.0 Public Sector 6.1 Budget
The State Duma, the lower house of the Russian legislative assembly, has passed in the first reading the draft federal budget for 2024 and the planned period of 2025-2026 on October 26.
According to the document, federal budget revenues are forecast in the amount of 35.065 trillion rubles ($373.73bn in 2024, 33.552 trillion rubles ($357.7bn) in 2025, and 34.051 trillion rubles ($363bn) in 2026.
Expenditures are expected to amount to 36.66 trillion rubles ($390.9bn), 34.382 trillion rubles ($366.5bn), and 35.587 trillion rubles ($379.3bn) respectively.
The federal budget deficit will total 1.595 trillion rubles ($17bn) in 2024, 0.83 trillion rubles ($8.9bn) in 2025, and 1.536 trillion rubles ($16.4bn) in 2026.
Russia's spending on defence will total $117bn in 2024 according to Anton Siluanov, it will increase significantly compared to previous years.
Russian President Vladimir Putin ssys the Russian economy is performing "better than previously expected" but some economists say it is actually overheating.
Despite a tight labour market and persistent inflation, Russia's GDP is set to grow by 2.2% this year, according to the International Monetary Fund (IMF), a rate three times faster than the expected growth in the eurozone.
This unexpected economic boom is primarily attributed to the significant increase in government spending, a departure from Russia's historical fiscal restraint, driven by financing the war in Ukraine.
The defence budget has surged to 3.9% of GDP this year, up from 2.7% in 2021, prior to the invasion of Ukraine. It is slated to increase by over 70% in
70 RUSSIA Country Report November 2023 www.intellinews.com