Russia's budget deficit will reach $56 billion in 2027

Russia's budget for 2027 is expected to have a deficit of around $56 billion, which is approximately 2% of the gross domestic product (GDP). This nearly doubles the previous target of 1.2% of GDP. The final parameters of the budget will be known after the bill is submitted to the State Duma by the end of September. Actual deficit figures in Russia often exceed planned amounts due to rising expenses related to the war with Ukraine. This year, the deficit has already reached $68 billion, and the expected final deficit could be between $76 billion and $88 billion. Experts predict that by 2027, the deficit could reach $81 billion. The new deficit was calculated based on a conservative oil price of $50 per barrel, which is lower than the current $59. The risks of not receiving tax revenues are increasing due to the slowing economy and falling real incomes of the population. The Russian Ministry of Finance does not plan to return to a surplus at least until 2042.