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Russia Foresees Larger Budget Deficit for 2026
🇵🇾 Paraguay /Economy & Trade

Russia Foresees Larger Budget Deficit for 2026

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Russia's Finance Minister Anton Siluanov acknowledged that the federal budget deficit for 2026 will be larger than initially projected.
  • Siluanov stated that the deficit increase is slight and will not significantly impact the volume of domestic state borrowing.
  • The deficit, initially planned at 1.6% of GDP, has already reached 2.5% of GDP in the first four months of 2026, but Siluanov expressed confidence that rising tax revenues are helping to correct the situation.

Russia's federal budget deficit for 2026 is projected to be larger than previously anticipated, according to Finance Minister Anton Siluanov. However, Siluanov assured that the increase would be modest and would not substantially affect the country's domestic borrowing plans.

Speaking at the St. Petersburg International Economic Forum, Siluanov stated, "We will adjust the parameters of the current year and the current deficit, which was 1.6% according to plans. We observe that there is a tendency for these parameters to change. The deficit will grow slightly." He added that this should not lead to significant changes in the volume of internal borrowing, which currently stands at approximately 5.5 trillion rubles (about $75 billion).

We will adjust the parameters of the current year and the current deficit, which was 1.6% according to plans. We observe that there is a tendency for these parameters to change. The deficit will grow slightly.

— Anton SiluanovRussia's Finance Minister Anton Siluanov commented on the projected increase in the 2026 budget deficit.

The budget law for 2026 had initially forecast a deficit of 3.8 trillion rubles, equivalent to 1.6% of the GDP. However, between January and April of 2026, the deficit surged to nearly 6 trillion rubles, or 2.5% of GDP. Siluanov attributed this rise to various factors, including the ongoing war in Ukraine, which has strained Russia's economy through Western sanctions and conflict-related expenditures.

This should not lead to significant changes in the volume of internal borrowing.

— Anton SiluanovSiluanov assured that the deficit increase would not significantly impact domestic borrowing.

Despite the growing deficit, Siluanov expressed optimism, noting that "tax revenues are coming in." He explained that the deficit could be covered by various sources, including "budgetary leftovers, asset sales, and others." He also indicated that any increase in borrowing would not be as significant as it was in the previous year.

The situation highlights the financial pressures Russia faces. Reports suggest that the country's war spending is on track to exceed its budget by $28 billion this year, prompting consideration of budget cuts in other areas. Siluanov reportedly requested the government to freeze spending in non-defense sectors to cover the war's costs, underscoring the challenges in financing the conflict, even with nearly 40% of this year's budget allocated to defense and security.

Tax revenues are coming in.

— Anton SiluanovSiluanov expressed confidence that rising tax revenues are helping to correct the deficit situation.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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