The Russian budget deficit increased in October due to the negative impact of military spending. Bloomberg.
Russia's budget deficit stood at 5.23 trillion rubles ($63 billion) in the first 10 months of 2026, as revenue growth did not keep pace with growth in government spending, according to Finance Ministry data.
The budget deficit for the entire year is expected to reach 3.2% of GDP or 7.3 trillion rubles.
Oil and gas revenues fell 14.1% year-on-year, even though Russia has benefited from rising oil prices in recent months.
Spending continues to outpace revenue as Russia's escalating war against Ukraine increases the cost of supporting the country's war economy.
Expenses in the first ten months increased by 13.4% and amounted to 38.4 trillion rubles. Annual spending is expected to increase by 13% from 2025, despite initial plans to rein in spending and reduce the budget deficit.