MOSCOW, November 7The federal budget of the Russian Federation in January-October, according to preliminary estimates of the Ministry of Finance, was executed with a deficit of 0.7% of GDP, or 1.235 trillion rubles, while the dynamics of treasury expenditures remained at a normal level — over 10 months they increased compared to the same period last year by 11.7%, to 24.341 trillion rubles, according to materials on the ministry’s website.
«The dynamics of execution of federal budget expenditures remains at a normal level after accelerated financing in January-February of certain contracted expenditures. According to preliminary estimates, the volume of federal budget expenditures for 10 months of 2023 amounted to 24,341 billion rubles, exceeding the figures for the same period last year by 11.7% y/y (+4.1% y/y since the beginning of the 2nd quarter of 2023),” the statement says.
“According to preliminary estimates, the volume of federal budget revenues in January-October 2023 amounted to 23,106 billion rubles, which is 4.4% higher than the volume of revenue receipts for the same period in 2022. At the same time, in terms of receipt of key non-oil and gas revenues — both the federal budget, and the budget system as a whole – there is a steady positive trend,” notes the Ministry of Finance.
The budget deficit for 10 months amounted to 1.235 trillion rubles. At the same time, the Ministry of Finance also provided an estimate of the deficit as a percentage of GDP — it amounted to 0.7%. During the same period last year, the budget deficit was 0.2% of GDP. At the same time, the current budget law projects the deficit at the end of 2023 at 2% of GDP, or 2.925 trillion rubles.
“The dynamics of revenue receipts and financing of expenses during January-October of the current year indicates the execution of the federal budget in accordance with the target parameters of the structural balance approved in the budget law,” the department notes.
The Ministry of Finance reports that in general, in 2023, the volume of federal budget expenditures will be formed based on the maximum amount of budget allocations approved in the current budget law and the amount of additional non-oil and gas revenues in accordance with the budget rules. “This ensures the stability of the primary structural deficit at the level of the parameters of the budget law,” the statement says.
At the same time, the department emphasizes that increased flexibility in budget management, including the ability to redirect part of the funds to unforeseen expenses, is ensured by the presence of unallocated reserves, “as well as the release of budgetary allocations in the amount of 1,496 billion rubles due to an advance transfer to the Pension and Social Insurance Fund in December 2022 of separate transfers provided for 2023.»