President Vladimir Putin is trying to make a bad face, but the numbers speak for themselves. According to Bloomberg, citing data from the Ministry of Finance, Russia’s budget surplus decreased in August due to sanctions and slowdown in natural gas supplies to Europe.
After the first eight months, Russia’s budget balance is up by 137 billion rubles (about 2.1 billion dollars). It may seem like a lot, but in just one month the surplus was reduced by more than 340 billion rubles and by the middle of the year it exceeded 1.5 trillion rubles. So you can see some convergence in the statistics, which means that the country spends a lot more money than it makes.
Usually at this time of year, the Russian budget was in better shape. One of the exceptions was for example 2020, when the pandemic has put a strain on state finances.
In August, Russia’s fiscal revenue growth slowed, while spending remained very high. It is worth noting, however, that despite the sanctions, the Russian economy remains under control.
