Oil and gas revenue bumper, seeing sustainable positive momentum, budget deficit increases by more than 38%

Russia's Finance Ministry said oil and gas revenue reached 5.698 trillion rubles, up 68.5 percent year-on-year, largely due to rising oil prices.

Non-oil and gas revenue of the Russian budget increased by 26.6% in the period from January to June 2024. (Source: CNN)

The ministry added that Russia's non-oil and gas budget revenue increased by 26.6% in the January-June period compared to the same period last year to 11.4 trillion rubles ($129.6 billion).

Russia's budget deficit in June 2024 was 0.5% of gross domestic product (GDP) as non-oil revenue growth offset spending.

Russia's budget deficit hit 1.4% of GDP in the first half of last year as Western sanctions following the conflict in Ukraine, including a cap on Russian oil prices and an oil embargo, cut Russia's energy revenues in early 2023.

Russia's budget revenue in the first six months of this year increased by more than 38% compared to the same period in 2023, the Russian Finance Ministry cited preliminary data showing.

Oil and gas revenue was up 68.5% and non-oil and gas revenue increased 26.6%.

"We have seen sustained positive momentum in key non-oil and gas revenue sources, including value-added tax (VAT). Increases in VAT and other sales taxes facilitate further non-oil and gas revenue growth in the second half of this year," the Ministry of Finance stressed.

Moscow expects sharp increases in budget revenues and expenditures this year.

Russia's Finance Ministry plans to spend 37.18 trillion rubles ($423 billion) this year and collect 35.06 trillion rubles (about $400 billion).

Russia's budget spending from January to June this year was also 22.3% higher than in the same period in 2023.

Since launching a special military operation against Ukraine, Russia's budget deficit has exceeded 3 trillion rubles ($34 billion) for two consecutive years.

*Data from the Russian General Statistics Office (Rosstat) also showed that the country's annual inflation rate rose to 8.59% in June from 8.3% in the previous month. This is the highest level since February 2023.

According to Rosstat, the consumer price index in Russia increased by 0.64% in June compared to the previous month. In this month, food prices increased by 0.63% compared to the previous month and by 9.81% compared to the same period last year.

Prices of non-food items last month also increased by 0.29% compared to May and increased by 7.01% compared to June 2023. Prices of services in June also increased by 1.06% compared to the previous month and increased by 8.79% compared to the same period last year.

Russia targets inflation at 4% and has raised interest rates to 16% to combat persistently high inflation.

Last week, Russian Central Bank Governor Elvira Nabiullina mentioned the possibility of further interest rate hikes at the meeting on July 26.

Source: https://baoquocte.vn/kinh-te-nga-boi-thu-tu-dau-khi-thay-dong-luc-tich-cuc-ben-vung-tham-hut-ngan-sach-tang-hon-38-278308.html