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NewsRescue
Russia’s public debt increased by about 10% in the first half of the year, as the government needed the funds to support the economy, according to Izvestia, citing the Accounts Chamber’s report on budget execution.
Between January and June, government borrowing increased by 9.8% and is expected to reach 25.1 trillion rubles ($256 billion) by the end of the year, accounting for 16.7% of Russia’s GDP.
Domestic debt climbed by $14 billion (+7.4%) in the first six months to reach $206 billion, close to the Finance Ministry’s top ceiling of $211 billion set for this year.
Simultaneously, the share of internal borrowing in the total debt structure fell from 82.3% to 80.5%.
Meanwhile, Russia’s external debt fell by $1.2 billion, totaling $56.2 billion out of a maximum of $66.6 billion, according to data. This comes as Russia cut its borrowing under government guarantees in US dollars by $1.1 billion, bringing the total to $18.5 billion.
The administration has been obliged to borrow more funds locally as the country’s ability to borrow outside has been curtailed as a result of Western sanctions relating to Ukraine. Domestic debt rose considerably in 2022, reaching $194 billion, while external debt fell to roughly $41 billion.
According to the federal budget law for 2023-25, Russia’s public debt will rise to roughly $259 billion by the end of 2023, $282.6 billion in 2024, and $305 billion by 2025.
