russia’s Budget Deficit for the First Nine Months Exceeded the Annual Target by 37%

From January through September 2026, russia’s federal budget deficit totaled $61.08 billion (5.186 trillion rubles), or 2.2% of GDP. This is  by 37% more than the kremlin had planned for the entire year – $44.59 billion (3.786 trillion rubles), or 1.6% of GDP.

In September, the ministry of finance of the rf raised its forecast for the annual deficit to $86.51 billion (7.345 trillion rubles), or 3.2% of GDP.

Budget expenditures for January–September increased by 14.5% compared to the same period last year – to $410.19 billion (34.825 trillion rubles). Revenues rose by only 10% – to $349.10 billion (29.639 trillion rubles). The oil and gas sector generated  by 17.2% less – $64.44 billion (5.471 trillion rubles).

Non-oil and gas revenues increased by 18.8% to $284.66 billion (24.168 trillion rubles). VAT revenues rose by 27.4% to $158.62 billion (13.467 trillion rubles). However, the additional tax revenues did not offset the losses from oil and gas and the increase in budget expenditures.

The government  of the rf  spends more than it collects and is forced to cover the shortfall using accumulated funds or borrowing. The use of balances in budget accounts reduces the reserve for future expenditures. In the near term, russia’s authorities will have to seek additional revenue by raising taxes, increasing debt, or cutting budget expenditures.