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2023 with deficit equal to 2% of GDP given the stable trend toward improvement in the budgetary situation, the Finance Ministry said. "The stable trend toward improvement of the budgetary situation makes it safe to project this year’s budget execution with a deficit at the level of the initial outlook of 2% of GDP," Siluanov was quoted as saying. "The structural deficit will contract gradually, with fiscal rule parameters to be reached in 2025," the ministry noted.
Russian Prime Minister Mikhail Mishustin expects execution of the federal budget by the end of this year with a planned deficit of 2% of GDP.
"Sustainable focus on positive changes permits expecting execution of the federal budget this year with a deficit at the level of the initial projection of 2% of GDP," he said at a meeting devoted to drafting federal budget for a three-year period. According to Economic Development Ministry’s data, "amid this background it is safe to speak about maintaining and even improving of those trends next year," PM added.
Speaking about expenditures, he said that after the advancing period at the beginning of the year they returned to their traditional level and amounted to around 2.24 trillion rubles in August.
According to preliminary figures provided by the Finance Ministry, Russia’s federal budget deficit totaled 2.81 trillion rubles ($28bn) in January-July.
Food exports are emerging as a significant revenue source for Russia's budget, following energy exports, according to Ruslan Davydov, Director of the Federal Customs Service. During an interview at the Eastern Economic Forum, Davydov highlighted the substantial increase in Russia's grain exports compared to 2022.
Davydov stated, "Our agricultural products exports are performing well. We have almost exceeded last year's exporting figures, with grain being the primary export, along with oil seeds, oil, vegetable oil, and sunflower seeds." He noted that China, the Middle East, Egypt, and Kazakhstan are the primary importers of Russian food products. While food exports have increased by approximately 70% in volume, their value has been influenced by price dynamics.
In addition to food exports, Davydov discussed the remarkable growth in Russia's car cargo transportation, which has more than doubled year-on-year in the past months of 2023. He highlighted the growth in both sea and railway cargo traffic, with car cargo traffic experiencing a 2.5-fold increase compared to 2022.
Furthermore, Davydov mentioned that China accounts for a significant share of
72 RUSSIA Country Report October 2023 www.intellinews.com