The Russian Ministry of Finance sees no risks in fulfilling the federal budget in 2023, but for the next three years, the Russian government is preparing for the “mobilization of financial resources.”

Minister of Finance of the Russian Federation, Anton Siluanov, made this statement, as reported by the Russian edition of Forbes.

“This year, we have no serious concerns about budget execution. We have no problems with basic decisions – we will handle everything. As for additional ones, resources will be found,” Siluanov assured.

“We are currently working together with our colleagues in the government on tasks related to resource mobilization for the next three years. Yes, it will be necessary,” added the Russian minister.

Siluanov previously stated that the most optimal way to finance the growing expenses of the Russian budget is to redistribute the “budget pie,” rather than increase the deficit and taxes. According to Russian media reports, the Russian Ministry of Finance proposed a “frontal reduction” of state spending in the budget for 2024, suggesting a 10% cut in departmental expenditures.

Commenting on the oil and gas revenues of the Russian budget, Siluanov assured that “this year, overall, we will meet our planned targets,” partly due to the depreciation of the ruble.

“The dollar has appreciated in value, and oil prices have declined. If we look at the volumes of oil and gas revenues, we have already reached the baseline level included in the budget,” explained the Russian minister.

At the same time, Siluanov did not respond to the question of whether the Ministry of Finance has changed its forecast regarding the budget deficit for 2023.

“The economy is constantly moving, so the deficit can also change slightly – in either direction,” the minister believes.

As reported, the oil and gas revenues of the Russian budget in the first half of the year fell by 47% compared to the same period last year, amounting to 3.38 trillion rubles. This was primarily due to the discount on Russian Urals oil compared to Brent oil, as well as the decrease in gas prices and export volumes.

The budget deficit of Russia in the first half of the year is close to the plan for the entire year – 2.595 trillion rubles from January to June, compared to the forecast of 2.925 trillion rubles (2% of GDP) by the end of the year. As reported by BusinessCensor, due to the decline in oil and gas export revenues and the increase in war-related expenditures, the Kremlin is urgently seeking additional sources to fund the budget.

In addition, the Russian government has introduced a one-time fee for businesses, which is expected to generate an additional 300 billion rubles in tax revenue. They have also strengthened tax compliance controls for bloggers and others.