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Russia announces biggest budget deficit since 1998 default


Dennis

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"Russia’s finance ministry said Monday that budget revenue in January was 35% lower compared with the same month in 2022, the last month before Russia sent troops into Ukraine.

The ministry also said the budget deficit for January was 1.77 trillion rubles ($23.9 billion), about 60% of the shortfall that had been planned for the entire year.

Oil and gas revenue, the backbone of Russia’s economy, was down 46% compared with January 2022."

"The Russian government’s oil and gas revenue slumped in January, contributing to the biggest budget deficit for the first month of the year since at least 1998. "

The economic data announced by the Russian government paints a very dire fiscal situation. This is mainly due to Europe's oil price cap which only went into effect last month. In January alone, the deficit is roughly 1.4% of the entire Russian GDP. If this continues like this, Russia will soon reach the point of no return, economically. Why they still wanna continue with this war, I don't get it...

https://apnews.com/article/russia-government-business-economy-3e4943937ada23fe9231b06e038a3a58

https://www-bloomberg-com.translate.goog/news/articles/2023-02-06/russia-racks-up-25-billion-budget-gap-as-energy-income-halves?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

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