Russia's Non-Oil and Gas Budget Deficit Projected to Shrink to 5% of GDP, Finance Minister Says

Russia's non-oil and gas budget deficit is projected to shrink to around 5% of gross domestic product, Finance Minister Anton Siluanov said, according to Russian state news agency TASS.

Siluanov said non-oil and gas revenues are expected to consistently exceed 80% of Russia's total government revenues, a figure that reflects efforts by Moscow to reduce the federal budget's historical reliance on energy exports.

Reducing Dependence on Energy Revenue

The non-oil and gas deficit is a metric commonly used to assess how reliant a country's budget is on fluctuating global energy prices, since it strips out oil and gas revenues to show the underlying fiscal position. A narrower non-oil and gas deficit generally signals a more diversified revenue base.

Russia's public finances have faced sustained scrutiny since the start of the war in Ukraine, as Western sanctions targeting its energy exports have added pressure on the government's traditional revenue streams and prompted efforts to broaden other sources of income.

TASS's report did not specify the exact time frame for the projected 5% figure or provide additional context on which budget year the projection applies to.

Siluanov's comments come as Russian officials continue to present the state of public finances amid continued international sanctions and shifting global energy markets.