A high-level meeting brought together President Vladimir Putin with Prime Minister Mikhail Mishustin, Anton Vaino, head of the Presidential Administration, First Deputy Prime Minister Andrei Belousov, Deputy Prime Minister Marat Khusnullin, Maxim Oreshkin, Minister of Economic Development, and Maxim Reshetnikov, Minister of Finance, along with Anton Siluanov to review the nation’s economic posture. Also present was Elvira Nabiullina, governor of the Central Bank of Russia, who provided macroeconomic context for the discussions.
Addressing the participants, the President noted that in the first quarter, the national budget was replenished to levels matching the previous year. He emphasized that the overall economic dynamics were visible in the budget indicators, with consolidated budget revenues in the first quarter surpassing 13 trillion rubles, a figure aligned with last year yet accompanied by a favorable underlying trajectory, reflecting steady growth in key sectors.
Under the federal budget framework for 2023 and the planning horizon for 2024–2025, 2023 revenues were projected at 26.13 trillion rubles, about 17.4 percent of GDP, while expenses were anticipated at 29.056 trillion rubles, or roughly 19.4 percent of GDP. In January and February alone, budget revenues declined by about 25 percent year over year, totaling 3.163 trillion rubles but with expectations for improvement as the year progressed.
The President highlighted an anticipated stronger inflow from oil and gas revenues in the second quarter, noting that oil and gas receipts fell by 1.3 trillion rubles in the first quarter. At the same time, non-oil and gas revenues rose by around 14 percent, a sign of resilience in sectors less tied to commodity prices. He attributed the oil and gas revenue dip to a high base effect and the price environment observed last year, while warning that external risk factors for the economy remain. The discussion also touched on measures to shield the financial system from external shocks, including restrictions on capital exports that were put in place by the Bank of Russia and the government last year. These steps helped to reduce financial risks and preserve stability, with some restrictions subsequently eased as conditions improved, according to the President.
indicators
The President affirmed that the Russian economy is growing and that the government has already revised its socio-economic development forecast upward. In his words, April results point to real GDP growth, with official signals suggesting a stronger trajectory than previously anticipated. The aim remains to keep forecasts as objective as possible to support effective governance and robust national economic performance.
During the budget planning, the government assumed a baseline scenario of a small GDP decline of about 0.8 percent for the year. Inflation recently stood at 3.3 percent on an annual basis as of early April, with expectations for a further decline toward the three percent mark by month’s end. The President noted that recent conversations with the Central Bank Governor confirmed the trend downward in inflation, underscoring the need to avoid rapid shifts that could disrupt business plans and household incomes, and thereby affect budget revenues.
The discourse stressed that price stability is essential for sustainable economic activity and for protecting citizens’ earnings. It was underscored that inflation dynamics influence budgeting and the public’s financial planning, reinforcing the link between monetary policy and real economic outcomes.
business activity
Putin expressed optimism about the pace of economic activity, pointing to reports that the business activity index for March stood at 56.8 points, the third-highest value on record. This indicator was cited as evidence of rising confidence among domestic traders and a healthier commercial climate. Retail turnover data through early April showed a rise of just under 25 percent from the start of the month, while freight movements on railway networks climbed modestly, with March showing a lift and April continuing that momentum.
He acknowledged, however, that several regions continue to experience labor shortages despite historically low unemployment nationwide. The President outlined three key tasks to broaden the labor supply: first, making full use of the workforce potential in regions with higher unemployment rates; second, accelerating the adoption of automation technologies across all sectors, including social services; and third, increasing investment in skills development. He highlighted the importance of short-term training programs that enable workers to acquire new competencies and shift to in-demand occupations, stressing that this is vital for both regional development and the national economy. The discussion emphasized practical steps to align labor resources with the evolving needs of industry and public services, ensuring steady progress in economic activity across the country.