Russia's Budget Deficit Grows to 2.8% of GDP in First Seven Months

Russia's federal budget deficit expanded to 6.46 trillion roubles ($78.21 billion) in the first seven months of 2026, equivalent to 2.8% of gross domestic product, according to preliminary data released by the finance ministry on Tuesday. This marks an increase from the 5.7 trillion roubles deficit recorded in the January-June period, which stood at 2.5% of GDP.

Revenue collection from the start of the year grew by 8.8% year-on-year, while government spending rose by 14.5% over the same period. The faster pace of expenditure has widened the fiscal shortfall.

The ministry's figures show revenues of 22.112 trillion roubles against spending of 28.567 trillion roubles for January-July. In the same period of 2025, revenues were 20.328 trillion roubles and spending 24.949 trillion roubles, resulting in a deficit of 4.622 trillion roubles, or 2.2% of GDP.

The government's budget plan for the full year 2026 targets revenues of 40.283 trillion roubles and spending of 44.070 trillion roubles, implying a deficit of 3.786 trillion roubles, or 1.6% of GDP. The current shortfall is already well above that annual target, suggesting fiscal pressures may persist.