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The Russian treasury has been hit by the reduction of oil and gas revenues and the deterioration of the economy.

The Russian authorities need to look for additional revenues for the treasury, which has been hit by the reduction of oil and gas revenues and the worsening situation in the economy. The head of the Federation Council Committee on Budget and Financial Markets Anatoly Artamonov said this on Wednesday, The Moscow Times reports (link to article in Russian).

The senator said measures need to be taken “urgently” as “assessments of economic indicators” have become “more pessimistic” and commodity revenues are declining.

“We need to use all available resources to increase the revenue base,” Artamonov urged. In particular, he said, it is necessary to consider the abolition of some tax benefits, the amount of which has now reached one third of the federal budget.

In addition, Artamonov continued, the level of shadow employment in Russia remains high, when individuals avoid paying income tax and contributions to social funds. We are talking, in particular, about salaries “in envelopes”, the volume of which was previously estimated by the authorities at 10 trillion rubles a year.

Also, “our persistent reluctance to deal with privatization issues is perplexing,” the senator said, adding that all the measures he listed are “reserves to replenish the budget” (quoted by Interfax).

Money is increasingly needed by the federal treasury, which spends every third ruble on the war - a record share since the Soviet Union. According to the Ministry of Finance, oil and gas revenues fell by 17% in the first half of this year, while total revenues grew by only 3%, meaning that in real terms (adjusted for inflation) they began to shrink. At the same time, expenditures jumped by 20%. As a result, in six months the budget has a “hole” of 3.7 trillion rubles - 6 times more than in the same period a year ago.

Reserves for patching budget “holes” are nearing exhaustion: the liquid assets of the National Welfare Fund, which before the war reached $120 billion, by July 1, 2025 reduced to $52.6 billion, that is, almost 2.5 times. If oil prices remain low, this reserve will be completely used up as early as next year, economists at the Russian Academy of National Economy and Public Administration warned.

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