Bloomberg: Russia cuts budget spending due to cash shortage

The Russian government introduced a strict austerity regime in April after a lack of funds caused problems with financing budget expenditures.

This is reported by Bloomberg, citing sources.

According to sources, Russian Finance Minister Anton Siluanov warned Prime Minister Mikhail Mishustin that there might not be enough money to make all necessary payments on time. At this point, the Russian budget has a deficit of $65.3 billion.

Cash problems emerged in early 2026, but became most acute in April. At the same time, Russiaʼs oil revenues rose to a six-month high due to rising energy prices amid the war with Iran.

As part of the austerity regime, Russia has cut budget funding for non-war-related items, social programs, regional support, and national debt by 35%. Federal agencies have also been instructed to prepare for 15% staff cuts and postpone all non-essential spending.

Despite this, the situation is not considered critical at the moment. According to Bloombergʼs interlocutors, Russia can still continue to finance the war for several years.

At the same time, the Russian federal budget deficit has already grown to $77.2 billion, or 2.8% of GDP. This is significantly higher than the 1.6% of GDP planned for 2026. According to internal forecasts of the Russian Ministry of Finance, the deficit may increase even more by the end of the year, and in 2027 it may reach 3.2-3.8% of GDP.

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