The head of the Ministry of Finance of the Russian Federation, Anton Siluanov, requested to reduce expenditures in all items of the 2026 budget, except for the military. As the Financial Times has learned, Siluanov sent a similar letter to the government in February.
The Minister of Finance asked to reduce expenditures by a total of 2.9 trillion rubles. If the situation develops according to a negative scenario, as follows from Siluanov’s letter, in 2028, expenditures included in the three-year budget will have to be reduced by 7.1 trillion rubles.
Siluanov wrote about cutting budget spending even before the United States and Israel started the war with Iran. Because of the conflict in the Middle East, global oil prices rose, and the United States eased the embargo on Russian oil supplies. This has provided the Russian budget with additional revenues, but, as the Financial Times wrote, they will not be enough to cover Russia’s expenses for the war with Ukraine.
In an interview with Kommersant, published on May 27, Siluanov to talkHis administration is adjusting the budget. The Finance Minister cited “changing macro conditions” and “the need for additional focus of resources in important priority areas.” He stressed that “the reserves are not endless.”
The latest version of the Russian budget for 2026 stipulates a deficit of about 1.6% of GDP (revenues 40.28 trillion rubles, expenditures 44.07 trillion rubles).
However, in the first quarter of this year, the budget deficit reached 2.5% of GDP, the worst figure since the beginning of the major war with Ukraine, as noted by the Financial Times.