Tax & Spend
Russia’s Post-Election Spending Sends Budget Into Deep Deficit
Vladimir Putin arrives for his inauguration ceremony at the Kremlin in Moscow, on May 7.
Photographer: Sergei Savostyonov/AFP/Getty ImagesThis article is for subscribers only.
The Kremlin opened up the fiscal taps after President Vladimir Putin’s reelection in March, putting the budget back into deep deficit despite a surge in oil revenues.
The shortfall was 1.5 trillion rubles ($16 billion) in the year to date through April, more than doubling from the previous month, the Finance Ministry said Monday. While it didn’t break out the monthly totals, Bloomberg calculations show the budget swung into a deficit of 877 billion rubles in April after a surplus in March.