Federal budget of Russia
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| Federal budget of Russia | |
|---|---|
| Country | Russia |
| Budget year | 2024 |
| Previous budget | 2023 Russian federal budget |
| Submitted | Government of Russia |
| Submitted by | Mikhail Mishustin |
| Submitted to | State Duma |
| Passed | State Duma, Federation Council |
| Signed | President of Russia |
| Revenue | ~29.1 trillion ₽ |
| Expenditures | ~36.6 trillion ₽ |
| Deficit | ~7.5 trillion ₽ |
| Debt | ~24.5 trillion ₽ (16.5% of GDP) |
| Balance | Deficit |
| Credit rating | S&P: BB+; Moody's: Ba1 |
Federal budget of Russia. The federal budget is the primary financial plan of the Government of Russia, outlining projected revenues and authorized expenditures for a fiscal year. It is formulated by the Ministry of Finance, approved by the Federal Assembly, and signed into law by the President of Russia. The budget is a key instrument for implementing state policy, funding national projects, and managing the country's macroeconomic stability.
Overview
The federal budget operates within the framework established by the Budget Code of the Russian Federation and the Constitution of Russia. Its execution is managed by the Federal Treasury, which oversees all government accounts. Major budgetary decisions are often influenced by long-term strategies like the May Decrees and national goals set by the Kremlin. The budget's parameters are closely tied to forecasts for key economic indicators, including the price of Urals oil, prepared by the Ministry of Economic Development.
Budget process
The budget process is initiated by the Government of Russia, specifically the Ministry of Finance, which drafts the bill based on proposals from federal ministries and agencies. The draft is then submitted to the State Duma for consideration in three readings, where committees like the State Duma Committee on Budget and Taxes review it. Following adoption by the State Duma, the budget is sent to the Federation Council for approval. Final assent is given by the President of Russia, after which the Federal Treasury and the Federal Service for Financial Monitoring oversee its execution and control.
Revenue
Budget revenues are predominantly derived from the tax system, with mineral extraction taxes on oil and gas constituting a significant share, alongside value-added tax and corporate profit tax. Non-tax revenues include dividends from major state-owned enterprises like Rosneft and Gazprom, as well as Central Bank profit transfers. Revenue streams are highly sensitive to global commodity prices, particularly for Urals oil, and are affected by international sanctions. Other sources include customs duties managed by the Federal Customs Service.
Expenditure
The largest expenditure categories traditionally include national defense, social policy, and the national economy, which encompasses infrastructure and industry support. Significant funds are allocated to security agencies like the Ministry of Internal Affairs and the FSB. Major spending initiatives are often directed through national projects focusing on areas such as demographics, healthcare, and education. Other substantial outlays support pensions, public sector wages, and servicing the state debt.
Deficit and debt
Budget deficits are typically financed through borrowing from domestic markets via OFZ bonds and, to a lesser extent, from the National Wealth Fund. The Ministry of Finance conducts regular bond auctions on the Moscow Exchange. The overall level of public debt remains moderate relative to GDP, with the majority denominated in rubles. Debt management policies are coordinated with the Central Bank of Russia, which can act as a key buyer of government securities. Credit ratings from agencies like S&P Global Ratings and Fitch Ratings influence borrowing costs.
Historical trends
Historically, the budget was heavily dependent on hydrocarbon revenues, especially during the commodities boom of the 2000s, which led to the creation of the Stabilization Fund. The financial crisis of 2014–2016, following the annexation of Crimea and subsequent sanctions, prompted a shift toward more conservative fiscal rules. The 2022 Russian invasion of Ukraine and the resulting expansive sanctions regime triggered a pivot to a wartime fiscal posture, with record military spending and deficits financed by domestic borrowing and sovereign fund reserves.
Category:Government finances of Russia Russia