The federal budget of the Russian Federation for the first half of 2025 has significantly exceeded expectations: the deficit stands at 3.7 trillion rubles (approximately 47 billion USD), which is equal to 1.7% of the country’s GDP. According to official data from the Ministry of Finance of the Russian Federation, this is 500% more compared to the same period in 2024. In June alone, the deficit increased by another 300 billion rubles. Thus, in six months, the aggressor country has nearly reached the annual deficit limit planned at 3.8 trillion rubles or 1.7% of GDP.
This is reported by Business • Media
Growing Problems in Civil Sectors of the Economy
According to the head of the Ministry of Industry and Trade of the Russian Federation, Anton Alikhanov, the situation in the civil sector of the Russian economy is rapidly deteriorating. He emphasized that the growing problems require the state to increase support for critical industries; however, the budget resources, overloaded with military expenditures, are limited. Among the sectors that are suffering the most and need additional funding, Deputy Prime Minister Alexander Novak highlighted construction, transport engineering, the automotive industry, the coal sector, transport, and the agricultural sector. Alikhanov also added metallurgy, the forestry industry, and the production of building materials and furniture to this list.
“The increasing problems in the civil part of the Russian economy require the authorities to support an ever-growing number of industries, but the budget, overloaded with military expenses, is insufficient for this.”
The Government Limits the Distribution of Financial Aid
At the same time, the Russian government created a special subcommittee at the end of May to provide state support to companies and specific sectors of the economy. However, the main goal of this body is to reduce the amount of allocated financial aid rather than expand it. This indicates a further exacerbation of the cash deficit and the inability to fully support all troubled sectors of the economy.