Russian Budget Deficit Shrinks to Approximately $42 Billion

The Russian Ministry of Finance announced today, Tuesday, that the country recorded a slight budget surplus in May, reducing its deficit marginally in the first five months of the year to 3.41 trillion rubles ($41.9 billion). The Ministry of Finance anticipates an increase in tax revenues from the oil sector in the second half of the year. Finance Minister Anton Siluanov stated that "this year's Russian budget deficit will not exceed two percent of GDP," a claim disputed by most analysts. The International Monetary Fund is among those predicting that Russia will face a larger budget deficit this year. This compares to a one trillion ruble deficit in April. Monthly expenditure in May was at its lowest this year, down 1.1 trillion rubles from April. Meanwhile, non-oil and gas revenues increased by 9.1 percent from January to May compared to the same period last year. However, Moscow's earnings from oil and gas fell by 49.6 percent year-on-year during the January to May period, attributed to a decline in Urals oil prices and reduced natural gas export volumes, according to the Ministry of Finance. Preliminary data indicated that expenditure was up 26.5 percent year-on-year during that period, while income decreased by 18.5 percent.