Page 93 - RusRPTJul23

The budget deficit in 2023 at the level of 2% of GDP is questionable, Finance Minister Anton Siluanov said. According to him, it will depend on the amount of additional expenses. The best solution to the problem is to redistribute the “budget pie” “Everything will depend on our spending this year. According to the plan, 2% of GDP is our deficit this year, with a subsequent decrease in 2025 to 0.7%. Whether we meet it or not, everything will depend on our additional expenses, which we will accept in the current and subsequent years. So the question is,” he said.
According to the results of January-May 2023, the federal budget deficit exceeded the planned level for the entire year by almost 500bn rubles. and amounted to 3.4 trillion rubles, the Ministry of Finance reported. In five months, revenues decreased by 18.5% in annual terms, while expenses increased by 26.5%. According to the Electronic Budget portal, as of June 14, the budget spent 13.9 trillion rubles. from the current plan of 29.9 trillion, i.e. 46%. In 2022, 22.8% of total annual expenses were spent in December.
According to the minister, the increase in spending has a number of negative consequences for the economy if financed through debt sources, such as the placement of OFZs.
“If we massively rake up all the liquidity of the market, this, firstly, will reduce the ability of banks to lend to the economy, and we need just this direction, and
93 RUSSIA Country Report July 2023 www.intellinews.com