Russian Regional Budget Deficits Set to Grow 27 Percent
Finance Minister Anton Siluanov reported Monday that regional deficits will reach 1.9 trillion roubles this year. Falling tax revenues and high debt costs are straining local budgets.
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The financial stability of regional governments in Russia is facing significant pressure as the combined budget deficit is projected to surge by 27% to 1.9 trillion roubles ($25.4 billion) by 2026. Finance Minister Anton Siluanov highlighted these concerns during a hearing at the Federation Council, noting that the strain is primarily driven by a sharp decline in corporate profit tax revenues and a simultaneous rise in social obligations.
