During the six months of 2024, Russian budget expenditures for servicing the national debt reached 1.1 trillion rubles. This is 50% more than in the same period in 2023, writes Izvestia citing a report from the Accounts Chamber.
Author:
https://rb.ru/author/ntihonov/
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Of this amount, 1 trillion rubles were used to pay internal obligations: OFZ and government guarantees. The remaining 77 billion rubles ($857 million) were spent servicing the external public debt.
Overall, in 2024 it is planned to spend 2.3 trillion rubles on servicing the national debt. The increase in expenses is associated with an increase in debt, the Ministry of Finance noted. In the first six months of 2024, borrowing increased by 418 billion rubles, reaching 26 trillion rubles, which is approximately 14.5% of GDP. Other factors increasing debt servicing costs include a high key rate and a weakened ruble.
The Ministry of Finance predicts that by 2027 Russia’s public debt will reach 18% of GDP, but will remain at a safe level, below 20%.
In 2024, the domestic debt limit is set at 26.7 trillion rubles ($63 billion). At the beginning of September, domestic borrowings amounted to 21.5 trillion rubles, and foreign borrowings amounted to 53.4 billion dollars.
In the summer of 2023, the Ministry of Finance warned about the inevitable growth of public debt. The department then signaled its intention to keep it within 20% of GDP, emphasizing that external debt is not growing, as Russia can no longer borrow funds on foreign markets “for obvious reasons.”
Author:
Nikolai Tikhonov
Source: RB
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