Russia: the budget deficit at 2.4 trillion rubles in the first quarter of 2023

Russia’s budget deficit amounted to 2.4 trillion rubles in the first quarter of 2023, according to preliminary data from the Finance Ministry, released on Friday.

Budget revenues amounted to 5.677 billion rubles in the first quarter of the year, down 21% from revenues in the same period of 2022, due to reduced oil and gas revenues, said a statement from the ministry.

Non-oil and gas revenue, meanwhile, amounted to 4.042 billion rubles, down 4% year-on-year due to a refund in January 2023 of income tax overpayments for previous periods. .

Oil and gas revenue fell by 45 percent year-on-year totaling 1.635 billion rubles, mainly due to lower Urals oil prices and reduced natural gas exports, according to the same source.

VAT receipts in the first quarter of 2023 amounted to 2.693 billion rubles, remaining at last year’s level, while income tax receipts fell by 22% to 340 billion rubles in January March.

Expenses for the first quarter amounted to 8.077 billion rubles, exceeding those of the same period of the previous year by 34%.

According to the ministry, the monthly expenditure performance slowed in March (+4.2% year-on-year) following the accelerated financing of certain expenditure contracted in January-February.

Compared with preliminary data from the end of February, the budget deficit was reduced by 180 billion rubles, the statement continued.

APS