Russian President Vladimir Putin has projected that Russia will see its federal budget deficit dip below 1.5 percent of GDP by year end. This outlook was shared during a Council of State session. The president emphasized that the outcome was anticipated and not a cause for concern, suggesting the deficit would improve beyond earlier estimates.
Putin noted that the deficit outcome should be even better than the 1.5 percent threshold. He indicated that the final figure could fall under 1.5 percent, reflecting a favorable trend in the national fiscal position.
Earlier, the Ministry of Finance released preliminary figures for January through November 2023. The reported federal budget deficit stood at 878 billion rubles, a 4.8 percent rise compared with the same period in 2022, illustrating that revenues and expenditures moved in different directions during the period.
In response to these developments, Putin asserted that the Russian financial system remained solid. He highlighted that the 11 month federal budget deficit was around 0.5 percent of GDP, while the consolidated budget was in surplus, signaling resilience in state finances amid evolving fiscal pressures.
There were also steps taken to address the budget gap, including measures that increased public debt in order to bridge the shortfall. This approach was framed as part of broader fiscal management aimed at stabilizing the budget during periods of fluctuating revenue and expenditure levels.
Overall, the message from Moscow centers on a cautiously optimistic view of Russia’s fiscal trajectory. While short term deficits did widen in specific months, the authorities continue to monitor the balance between debt levels, revenue collection, and spending commitments to sustain macroeconomic stability.
Experts note that any projection of a budget deficit below a threshold depends on multiple variables, including tax collection efficiency, energy revenues, spending controls, and external economic conditions. The government has signaled intent to maintain prudent spending while protecting key public services and investment projects that support long term growth.
As the year closes, the administration is expected to publish final budget results that will provide a clearer picture of how the deficit performed relative to initial targets. Analysts will also be watching for revisions to revenue forecasts and the impact of debt management initiatives on overall fiscal health.