Russia in red. The Kremlin accounts worsen

Russia is grappling with a budget hole that the Kremlin is keeping under control for now only with words. In March, the deficit exceeded the annual target for the whole of 2023, confirming the very negative trend that began in January. Addressing the Duma deputies for the presentation of the annual report the prime minister Mikhail Mishustin he explained that as of March 8, the Russian deficit amounted to 3,300 billion rubles, clearly exceeding the forecast of 2,900 billion (equal to 2 percent of GDP). For Mishustin, this dynamic is part of the government’s plan, which has advanced the payment of a significant part of the annual expenditure (many public contracts, mostly military) to the first months of the year. Therefore, again according to the plan, in the coming months the reduction in spending and the increase in revenues will gradually bring the deficit in line with the budget targets.