Russia Sets 2027 Budget Deficit Target at About 2% of GDP

According to Sina Finance, Russian President Vladimir Putin said the government is preparing a 2027 federal budget that is expected to keep the deficit at about 2% of GDP. The budget uses a conservative oil price assumption of about $50 per barrel, and social security, public safety, and defense capacity building will remain priorities. Putin said the deficit level is broadly manageable and that the government will arrange revenues and spending based on relatively cautious energy price expectations. The new target is above the 1.3% of GDP deficit outlined for 2027 in the earlier 2026-2028 budget framework, which had planned to finance the gap mainly through higher government borrowing. Putin also said the 2027 budget will prioritize social commitments, public safety, and defense capabilities.