Russia swings to $29 bln first-quarter budget deficit

• This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.

MOSCOW, April 7 (Reuters) – Russia’s federal budget deficit came in at 2.4 trillion roubles ($28.93 billion) in the first quarter of the year as Moscow spent heavily and energy revenues fell, the finance ministry said on Friday.

In the same quarter of 2022 Russia posted a surplus of 1.13 trillion roubles, but since then significant outlays to support Russia’s military campaign in Ukraine, and Western sanctions on its crucial oil and gas exports, have hit government coffers.

The finance ministry stopped publishing monthly budget fulfilment data last year. But based on Friday’s data, Russia posted a surplus in March of 181 billion roubles, improving on monthly deficits of 821 billion roubles in February and 1.76 trillion roubles in January.

Russia’s overall government income was down 20.8% during the quarter compared to 2022 at 5.7 trillion roubles, led lower by a 45% fall in energy revenues to 1.64 trillion roubles, the finance ministry’s preliminary data showed.

Spending, meanwhile, accelerated 34% to 8.1 trillion roubles. Rising military production and huge state spending have helped keep Russia’s industry buzzingand soften the economic fallout of Russia’s campaign in Ukraine andthe impact of Western sanctions.

($1 = 82.9500 roubles)

Photo: A woman walks next to a shop with ‘patriotic’ clothing, including shirts with a portrait of Russian President Vladimir Putin and the slogan ‘Stop talking’, along with flags, such as of the Wagner Group, at an outdoor market in the town of Yefremov, Tula region, Russia. EPA-EFE/MAXIM SHIPENKOV