Prime Minister of the Russian Federation Mikhail Mishustin during a meeting on the draft federal budget for 2024 and the planning period 2025-2026 at the Government House of the Russian Federation. Photo: Dmitry Astakhov/POOL/TASS
The state budget deficit is canceled! In the first half of this year, state treasury expenses significantly exceeded revenues. But now it seems that the situation has started to improve.
– The economy is adapting to current challenges. At the end of August, the federal budget was executed with a surplus (the excess of income over expenses – Ed.). It amounted to about 230 billion rubles. The consolidated balance of the regions amounted to around 140 billion rubles more,” Prime Minister Mikhail Mishustin said at a government meeting on September 8. He dedicated himself to the draft federal budget for 2024 and the planning period of 2025 and 2026.
– Its objective (the draft budget – Ed.) is to solve the most important and largest-scale problems of the country’s development. Firstly, full compliance with the social obligations with the people that the President spoke about. And support for positive changes in the economy,” Mishustin stressed.
One of the main reasons for the excess of budget revenues over expenditures is the good income from exports.
– This was largely due to a significant increase in non-oil and gas revenues. At the end of the last summer month they exceeded 1.82 trillion rubles. This is 56.5% more than last year,” Mishustin explained. – If we talk about oil and gas revenues, then, despite external pressure, they have recovered. And, according to the Ministry of Finance, since September its trajectory – in the context of rising oil prices – is well ahead of last year’s values.
True, at the end of the year it is unlikely that the state budget deficit can be avoided. According to Mishustin, this deficit will amount to approximately 2% of GDP. Which isn’t so bad: the previous forecasts included roughly the same figure.
The Prime Minister also recalled that economic growth in Russia began from the third quarter.
– We see that it has become established. According to data from the Ministry of Economic Development, in July, in annual terms, the gross domestic product exceeded last year’s level by 5% and the level of two years ago by almost one percent, Mishustin noted.
What industries are helping the economy grow? The Prime Minister listed some of our “locomotives”.
– Industrial production was the main contribution. In June it increased by approximately 6%, in July almost 5%.
– Manufacturing industry. Its growth in seven months was more than 6%.
– The production of computers, electronics and optics increased more than 30%.
– The production of electrical material increased more than 20%.
“Good performance in the metallurgical and food industries, clothing, plastic and rubber products and furniture,” Mishustin added. – All this suggests that Russian companies continue to confidently adapt to external challenges. Explore promising niches. Expand existing projects and launch new ones. And investment activity, which is very important, increased 13% in the second quarter.
But it is important to look at things realistically, the Prime Minister noted.
“Of course, the risks have not disappeared,” Mishustin cooled his optimism a little. – It is important to take a pragmatic approach. Avoid overly optimistic forecasts when forming key features and making spending commitments.
