Published by Global Banking & Finance Review®
Posted on July 7, 2025
2 min readLast updated: January 23, 2026
Russia's budget deficit hit 1.7% of GDP in the first half of 2025, driven by increased defense spending and decreased energy revenues.
MOSCOW (Reuters) -Russia's budget deficit reached 3.69 trillion roubles ($46.89 billion), or 1.7% of gross domestic product (GDP), in the first half of the year, the same as expected for the full year, the finance ministry said.
The deficit for the first half of the year was higher than in the first five months of 2025, when it stood at 1.5% of GDP. In the first half of 2024 the deficit stood at 0.3% of GDP.
The ministry said that fiscal spending in the first half grew by 20.2% while revenues increased by only 2.8%. Russia's energy revenues fell by 17% compared to the same period last year.
Russia raised the 2025 budget deficit estimate to 1.7% ofgross domestic product in April from 0.5% after reducing theenergy revenue forecast by 24%, expecting a prolonged period oflow oil prices.
State spending on national defence was hiked by a quarter in2025 to 6.3% of GDP, the highest since the Cold War, as thecountry continued its war in Ukraine, now in its fourth year.
The government is planning to tap its fiscal reserves for447 billion roubles, or about one-tenth of its liquid assets, to balance the budget in 2025. The Finance Ministry is planning another revision of the budget in autumn.
($1 = 78.6955 roubles)
(Reporting by Darya Korsunskaya, writing by Gleb Bryanski, Editing by William Maclean)
Russia's budget deficit reached 3.69 trillion roubles, or 1.7% of GDP, in the first half of the year.
The deficit for the first half of the year was higher than in the first five months of 2025, when it stood at 1.5% of GDP, and significantly higher than 0.3% of GDP in the first half of 2024.
Fiscal spending grew by 20.2% while revenues only increased by 2.8%, and energy revenues fell by 17% compared to the same period last year.
The government plans to tap its fiscal reserves for 447 billion roubles, which is about one-tenth of its liquid assets, to balance the budget in 2025.
The budget deficit estimate for 2025 has been raised to 1.7% of GDP, reflecting a reduction in the energy revenue forecast due to expected low oil prices.
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