The Russian state on Thursday ordered the use of $16.2 billion from its main sovereign wealth fund to cover a budget deficit amid a military offensive in Ukraine that is affecting the country’s finances, AFP reported.
“The government has approved the allocation of this money from the State Fund for Social Protection of the Population to finance budget expenditures” and “ensuring the balance of the federal budget,” – says the press release of the Ministry of Finance of Russia.
According to the ministry, these funds will be directed mainly to “paying off the state debt and providing budget loans to the regions”, as well as to the payment of social benefits to citizens of Russia.
The relevant decree was signed on Thursday by the Prime Minister of Russia Mykhailo Mishustin.
The announcement comes as federal spending rose 21 percent between January and September, according to the Treasury Department. The growth is explained by the explosion of military spending associated with the offensive against Ukraine.
According to the forecast of the Russian government dated September 20, the deficit of the federal budget at the end of the year should amount to 0.9% of GDP.
According to the Ministry of Finance, as of October 1, 2022, the sovereign capital fund of Russia amounted to 188 billion dollars.
Source: Hot News RU
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