Russia’s budget deficit may reach 3-3.3% of GDP in 2023
In 2023, Russia may see a budget deficit of some 4.5-5 trillion rubles ($60.7-67.4 billion), or 3-3.3% of GDP, even without new shocks due to a higher volatility in its oil and gas revenues, Russia’s Expert RA credit rating agency said in its macroeconomic forecast.
"In 2023, we expect [Russia] to continue having a budget deficit of some 4.5-5 trillion rubles, or 3-3.3% of GDP, even without any new shocks amid a heightened volatility in oil and gas revenues," according to the forecast.
A weaker ruble may help cover the budget gap, but the scale of its weakening will hardly be sufficient enough, Expert RA predicts. According to it, while the government is unlikely to introduce a one-off windfall tax on big business it has been mulling of late, a hidden tax increase, for example via an early cancelation of tax relief on foreign exchange gains, looks quite possible.
Also, a potential budget consolidation will heavily depend on the geopolitical situation and export prices, while a sharp narrowing in the deficit being foreseen in the three-year budget does not seem likely yet, Expert RA concluded.
---
Follow us on Twitter @AzerNewsAz
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!