Russia's Federal Budget Deficit
Valery Gartung, head of the State Duma Committee for the Protection of Competition, lost his composure during a discussion on Russia's federal budget deficit and used profanity. He pointed out that the deficit is approaching 11 trillion rubles, with last year's shortfall exceeding 5 trillion rubles and the current deficit also nearing the 5 trillion mark.
Gartung asked: 'What are we going to do about this? Print money, or what?'
However, he later retracted his statement, claiming: 'there was no profanity at all.'
Financial Status and Forecasts
According to data from Russia's Ministry of Finance, the federal budget deficit for the first four months of 2026 reached 5.877 trillion rubles—1.6 times higher than the annual deficit target of 3.786 trillion rubles for 2026. During this period, budget revenues totaled 11.7 trillion rubles, while expenditures amounted to 17.5 trillion rubles. The Gaidar Institute projects that the deficit by the end of 2026 could double the planned level.
Germany's BND intelligence agency reported that Russia's actual budget deficit for 2025 was 8.01 trillion rubles, compared to the official figure of 5.65 trillion rubles. For 2026, national defense spending is set at 12.9 trillion rubles, accounting for 29.3% of all budget expenditures. Defense outlays exceed the annual budgets of 62 Russian regions, and total spending on the security bloc reaches 17 trillion rubles.
In May 2026, the Russian government downgraded its GDP growth forecast to 0.4%. Economist Dmitry Polevoy estimates that the shortfall in non-oil-and-gas revenues could range from 300 to 700 billion rubles in 2026, and from 1.3 to 1.8 trillion rubles in 2027. These figures point to serious problems in the country's fiscal policy and economic stability.
The budget deficit situation underscores Russia's mounting economic difficulties. High spending levels, particularly on defense, combined with declining revenues, could further destabilize the financial system. This has raised concerns among economists and analysts, who predict a potential escalation of the crisis in the near future.
As Russia grapples with its mounting budget deficit, the economic landscape is further complicated by a significant drop in citizens' incomes. This decline follows a sharp fall in business profits, raising concerns about the sustainability of fiscal policies and the overall economic stability. For a deeper understanding of how these trends are affecting the financial well-being of the population, read more about the sharp decline in Russian incomes.