The Russian budget loses unearned revenues for the first time: the economy is slowing down

Statistics from the Ministry of Finance of the Russian Federation show that the federal budget is betting on declining revenues due to the collapse of oil and gas earnings. In October, the budget received 4% less funds than the previous year, indicating a serious slowdown in the economy.

Furthermore, the sharp decline in raw material revenues by 27% has led to an overall decrease in budget revenues by 12% year-on-year, indicating an overall crisis in the economy.

The deterioration of the situation in key sectors of the economy has also affected the increase in budget deficit. GDP growth in the third quarter fell to 0.6%, industrial output increased only by 0.5%, and civilian sectors started to reduce production of essential goods.

The drop in revenues is connected with the crisis situation in the coal and steel industries, which have suffered significant losses. Despite attempts by the Ministry of Finance to cut expenses by 12%, the budget is still in deficit, which increased by 400 billion rubles in a month.

Imagine that large revenues in Russia from oil and gas supplies suddenly decreased due to a drop in prices on the world market, leading to serious further disturbances throughout the economy. Industries saw growth, the budget is out of funds, and Russia is likely facing a deeper economic crisis.