Budget Deficit Reached Trillions! Is the Russian Economy Collapsing?

Russia's budget deficit for 2024 has reached 3 trillion rubles. The Finance Ministry of Russia said on Monday that both spending and revenues had risen sharply as Moscow poured its economic resources into the war in Ukraine.

Data released showed that the budget deficit as a percentage of GDP narrowed to 1.7 percent from 1.9 percent in 2023, but was significantly wider than the ministry's initial plans for a deficit of 0.9 percent of GDP, or 1.6 trillion rubles.

Spending rose sharply to 7.15 trillion rubles in December, a month when the war intensified considerably.