Russian govt approves draft federal budget for 2027-2029

MOSCOW. Sept 25 (Interfax) - The Russian government approved the bill on the federal budget for 2027 and the planning period of 2028 and 2029 at a meeting on Thursday, the Cabinet's press service reported.

The budget plan targets a deficit of about 2% of GDP annually, including 2.2% in 2027, Finance Minister Anton Siluanov said at the meeting. It projects spending of 48.8 trillion rubles and revenues of 43.3 trillion rubles in 2027. Revenues are expected to grow to 48.4 trillion rubles in 2029.

"The budget is resilient to various scenarios. Starting next year the base price for Urals oil taken into account will be $50 per barrel for three years. In other words, all obligations will be financed with such a price level for oil. Given a more favourable situation, we will top up the National Wealth Fund," Siluanov said.

The non-oil and gas deficit is expected to narrow to 5% of GDP

The budget plan aims to transition to a zero structural primary deficit in 2029. In 2027-2028, the maximum amount of spending will exceed the structural level by 1.5 trillion rubles and 0.5 trillion rubles.

The budget's key priorities are to fulfil social obligations to citizens, support families with children, ensure defense and security, help participants in the special military operation and their families, and achieve national goals, including technological leadership.