Russias monthly fiscal deficit reached a record 3.9 trillion rubles in December in the middle of the EU-imposed ban on seaborne petroleum exports and the increasing functional cost of Russias intrusion of Ukraine, according to preliminary spending plan data examined by Bloomberg.

Financing Minister Anton Siluanov on Tuesday likewise verified that Russias total deficit spending in 2022 totaled up to 3.3 trillion rubles ($47 billion) or 2.3% of the nations GDP, making it the second-largest deficit in modern Russian history, surpassed only by that recorded in 2020, at the height of the coronavirus pandemic.Siluanov nonetheless stayed optimistic about the resulting number throughout a Tuesday government conference, keeping in mind that funds allocated to state non-budgetary funds through deferments on insurance coverage premiums should be taken into consideration when examining the deficit spending size.

If we subtract these funds from the volume of costs, then the deficit totaled up to 1.8% of gross domestic product, which is less than 2%, as prepared, Siluanov said.

Russias total government costs in 2022 totaled up to 31.11 trillion rubles, exceeding the pre-war projection by over a third and the amount invested in 2021 by over a quarter.Taxes on export sales of oil, gas, and other commodities were the key source of Russias budget incomes in 2022.

Profits created by taxes on oil sales increased by 33% year-on-year, while tax earnings from gas sales likewise increased by more than 3 times.However, in light of the current EU sanctions and the blocs gas rate cap, the budget will no longer have the ability to rely on commodity exports in 2023.

Russia is heading into the new year without this huge cushion, without the European market for gas exports, with much lower oil prices and lower oil export volumes, economic expert Janis Kluge of the German Institute for International and Security Affairs stated in an interview with The Moscow Times earlier this month, adding that this was going to be a big problem.