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Investing.com -- Russia's budget deficit has shrunk to 1% of the country's gross domestic product (GDP), or 2.17 trillion roubles ($25.5 billion), in the first quarter of 2025.
This is a decrease from 1.3% of GDP in the first two months of the same year, according to a statement from the finance ministry on Tuesday.
Despite this reduction, the deficit ratio remains considerably higher than the same period in the previous year, when it was reported to be 0.1%. The finance ministry also noted a significant increase in state spending, which rose by 24.5%, while oil and gas revenues fell by nearly 10%.
The finance ministry attributed the rise in state spending to the expedited financing of expenditures in January of this year. It stressed that this increase wouldn't affect the target parameters of the structural balance for the entirety of 2025.
The ministry reaffirmed this in a statement, saying, "It (increased spending) is due to the accelerated financing of expenditures in January of this year and will not affect the target parameters of the structural balance for 2025 overall."
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