Russia records budget surplus of 0.1% of GDP in 9 months

Russia reported on Wednesday a budget surplus of 0.1 per cent of GDP for the first nine months of 2024, a significant improvement from the deficit recorded in previous months.

The surplus, amounting to 169 billion rubles ($1.73 billion), was driven primarily by a surge in oil and gas revenues, which increased by 49.4 per cent compared to the same period last year. Higher oil prices, Russia’s main export commodity, played a key role in boosting these revenues.

The Finance Ministry expects oil and gas revenues to continue outperforming the baseline forecast in the coming months. Overall, budget revenues increased by 33.2 per cent year-over-year, reaching 26.3 trillion rubles. Non-energy revenues grew by 26.9 per cent.

“In the coming months, a steady excess of oil and gas revenue over the baseline level is also expected,” the ministry stated.

The ministry has submitted the draft budget for 2025 to parliament for review, with a projected deficit of 1.7 per cent. However, the government’s spending is expected to accelerate in the final months of 2024, potentially fueling inflation in early 2025 and delaying the central bank’s plans to ease monetary policy.

Attribution: Reuters