Putin Projects 2% Budget Deficit for 2027 as Growth Stalls at 0.6%

Russia's projected budget deficit for 2027 is expected to reach approximately 2% of GDP, according to President Vladimir Putin. This figure marks an increase from the 1.2% of GDP outlined in the current law. To address the growing fiscal pressure, the Ministry of Finance has increased activity in the domestic market, recently issuing new bonds to raise capital. Financial analyst and PhD in Economics Mikhail Belyayev told Pravda.Ru that while a 2% deficit is not inherently critical, the primary risk lies in sluggish economic growth, which limits the state's ability to meet its obligations. Belyayev characterized the deficit as a loan from the future that must be covered through tax revenues, the privatization of assets, or income from unitary enterprises. The analyst noted that securing these reserves is difficult given a projected economic growth rate of just 0.5–1%. Belyayev attributed this stagnation to the Central Bank's restrictive monetary policy.