Page 87 - RusRPTJul24

6.1.1 Budget dynamics - results
Russia's revenues from the sale of oil and gas in June will increase by more than 50% y/y to $9.4B. Despite numerous sanctions against oil and gas revenues, the Russian Federation was able to redirect oil exports from Europe to India and China, providing much-needed financial flows for its budget.
The budget for 2024 will turn out to have a higher deficit than planned, but the deficit will still be small. The Ministry of Finance updated its forecast for budget execution on June 4, increasing the deficit by a quarter, from 1.6 to 2.1 trillion rubles. This is only 1.1% of GDP - half what it was in 2023.
The Russian budget deficit in 2024 will increase by 524bn rubles and amount to 2.12 trillion rubles instead of the planned 1.58 trillion, as follows from amendments to the three-year budget introduced by the government to the Duma along with bills on tax reform. This is 1.1% of GDP instead of the planned 0.8%. The Ministry of Finance explained the increase in expenses by the implementation of Vladimir Putin’s instructions, including the results of the address to the Federal Assembly.
The amendments provide the following arithmetic: compared to the current budget, expenses will increase by 522bn rubles, while additional oil and gas revenues will fall by 767bn rubles compared to the plan (that is, by more than a third - from 1.82 trillion to 1.05 trillion ). But this drop will be offset by an increase in non-oil revenues and basic oil and gas revenues by approximately
87 RUSSIA Country Report July 2024 www.intellinews.com