Russia's federal budget recorded a 3.4 trillion rouble ($44 billion) deficit in the first four months of the year, as Moscow continued to spend heavily and energy revenue fell sharply. According to Reuters calculations, average price of Urals was 4,107 roubles per barrel in the first ten days of May, while the budget assumes the breakeven price of 4,788 roubles per barrel, or $70.1 per barrel under the rouble rate of 68.3 per $1. In May, the price fell thanks to a stronger rouble and a weaker global oil prices in dollars. The rouble price defines state budget revenues from oil and gas sales, especially from the mineral extraction tax. Just four months into the year, the spending gap in April took Russia's deficit 17% above the government's plans for a 2.9 trillion-rouble deficit in 2023 as a whole. Spending was 26.3% higher in the first four months of the year compared with 2022, the preliminary data showed, while income was down 22.4%. Amid falling revenues, Moscow has been forced to start selling international reserves to help cover the deficit. ($1 = 77.7205 roubles)
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Urals price in roubles in 2022-2023 15.05.23 Urals price in roubles in 2023 15.05.23 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Reuters
Editing by Christina Fincher)
