Russia expects its 2026 budget deficitDeficitDeficit refers to shortfall in the balance of trade, balance of payments, or government budgets. The term belongs in Level 7 because it helps connect macro conditions, policy, o...Read More to reach 3% of GDP as war-related spending rises and the government prepares additional borrowing.

Russia's 2026 budget deficit is expected to reach 3% of GDP, Finance Minister Anton Siluanov said, nearly double the government's original 1.6% target and above 2025's 2.6%. Reuters reported the January-August deficit had already reached 2.5% of GDP. Higher spending needs include air defence and measures responding to fuel shortages after Ukrainian attacks on refineries and other infrastructure. Moscow plans additional borrowing beyond the previously projected 5.5 trillion roubles while preparing its 2027 budget, linking battlefield pressures increasingly directly to Russia's fiscal outlook.