Russia's budget deficit could grow 3-4 times in 2023

Such forecasts have been made by the KSE Institute.

According to the experts, in 2023 the annual budget deficit of the Russian Federation will increase 3-4 times compared to the previous year. In addition, the Sovereign Wealth Fund may be exhausted by the end of 2023.

Already in February 2023, Russia's federal budget deficit was 820 billion roubles and in the first two months of the year the total was 2.6 trillion roubles or 88% of the planned deficit for the whole year.

Russia has fallen far short of its own budget plans. The Kremlin also continues to spend heavily on the ongoing illegal war against Ukraine.

As for Russia's oil and gas revenues, they were 46% lower than in 2022. At the same time, federal budget expenditures remain 51% higher than in January and February 2022.

Also, Russia continues to actively spend money from the National Welfare Fund (NWF), resulting in a reduction of 1.4 trillion roubles. If the rate of use continues, the liquid part of the Fund will be almost exhausted by the end of this year.