Russia on the verge of meltdown as overspending continues with war
Russia recorded a substantial deficit in 2024, driven by heavy spending on the war effort, which is now approaching its third year.
According to figures released by the Russian Finance Ministry, the country’s deficit reached $30 billion, while revenues fell by 25% during the same period.
Since the start of the conflict in Ukraine, President Vladimir Putin has focused the country’s economy on supporting the war effort. Meanwhile, Western sanctions have severely impacted revenue from Russia’s oil and gas exports.
The Finance Ministry stated that spending increased toward the end of the year, funded by additional income from oil and gas revenues. A portion of these funds was allocated to advance payments for 2025 expenditures, according to the Interfax news agency.
Russia’s deficit as a percentage of gross domestic product (GDP) fell slightly from 1.9% to 1.7% last year.
(QG - Source: Newsweek / Picture: © Pixabay)