Tax & Spend
Russia’s Budget Gap Surges to Record as War Hits Finances
- Revenues hit by oil-price limits as spending on invasion grows
- Government expects deficit this year of 2% of GDP on $70 oil
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Russia’s federal budget deficit widened to a record in December as revenues plunged amid restrictions on oil exports and spending on the invasion of Ukraine grew.
The fiscal gap reached a record 3.9 trillion rubles ($56 billion) last month, according to Bloomberg calculations based on preliminary government data released Tuesday. That brought the full-year shortfall to about 3.3 trillion rubles, reversing a surplus in the 11 months of the year.