The Kremlin is bursting at the seams: Russia’s deficit has tripled due to the war
14 May 10:30
Russia is sinking deeper into a financial crisis that is gaining momentum against the backdrop of the war against Ukraine and a total miscalculation of economic policy. According to the Foreign Intelligence Service of Ukraine, the Russian economy is rapidly moving towards systemic instability, and the situation with public finances threatens to turn into a full-fledged budgetary bankruptcy, "Komersant Ukrainian" reports
The budget deficit is breaking anti-records
One of the most alarming signals is the sharp increase in the federal budget deficit. According to the Foreign Intelligence Service of Ukraine, in April, Russia’s public spending increased by 35% compared to March and amounted to 51.4 billion dollars. US DOLLARS.
In general, in the first four months of 2025, the expenditure side of the Russian budget increased by 21 % compared to the same period last year and amounted to 185.8 billion US dollars. THE KREMLIN PLANS TO FURTHER DETERIORATE THE SITUATION.
The Kremlin plans to further aggravate the situation: in the coming days, the budget deficit is to be officially increased from 1.2 trillion rubles to 3.8 trillion rubles, which is equivalent to 45.6 billion dollars at the current exchange rate. This is a new anti-record for the Putin regime since the beginning of the armed aggression against Ukraine, as the Russian budget was in surplus before the war.
Forecast: a systemic crisis is inevitable
According to the forecasts of the Foreign Intelligence Service of Ukraine, in 2025, the increase in the federal budget deficit of the Russian Federation will go beyond the parameters specified by the Russian Ministry of Finance on May 12. After all, in January-April, the deficit reached a record high of $39 billion. In January-April, the deficit reached a record high of USD 39 billion and was three times higher than last year (for the same period).
In order to cover the financial gaps, the Russian government is forced to continue spending money from the national welfare fund instead of replenishing it. Thus, in the first quarter of this year alone, 6.5 billion US dollars were spent from this fund. USD 6.5 billion was spent from this fund in the first quarter of this year alone, while the Ministry of Finance of the Russian Federation planned to spend USD 5.4 billion for the whole of 2015. The total for the whole of 2025 is $5.4 billion.
This is evidence that the Russian economy is entering a systemic crisis, and it is becoming increasingly difficult for the Kremlin to hide its strategic miscalculations related to Russia’s armed aggression against Ukraine.
