Russian Finance Minister Announces Expansion of Fiscal Shortfall
(MENAFN) Russian Finance Minister Anton Siluanov announced on Tuesday that the country's fiscal shortfall will expand due to a downturn in income from crude oil and natural gas, according to a report by a news agency.
To manage this budgetary gap, the government intends to utilize a portion of the National Wealth Fund’s reserves.
"Overall for the year, based on the forecasts given to us by the Ministry of Economy, which we have adopted as the basis for adjusting the federal budget, we are using the National Wealth Fund's funds in the amount of 447 billion rubles ($5.48 billion)," Siluanov stated while addressing journalists in Moscow.
He explained that revisions to fiscal projections were prompted by fluctuating oil prices.
Siluanov clarified that “We do not expect any additional borrowing volumes or increase in expenses in excess of the growth of non-oil and gas revenues. This means that the volume of borrowing on the market is not increasing," as he discussed the updated estimate for the 2025 fiscal deficit, which has risen from 0.5 percent to 1.7 percent of the nation's GDP.
Additionally, Siluanov emphasized that the core budgetary framework authorized by Leader Vladimir Putin will remain unchanged through 2030, reinforcing the government’s commitment to long-term fiscal discipline.
As of April 1, Russia's available funds in the Sovereign Wealth Fund amounted to 3.2 trillion rubles (USD39.2 billion), representing the country's financial buffer to manage economic fluctuations.
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