The Ministry of Finance planned to increase the Russian public debt to a level not exceeding 20 percent of GDP
In the next five years, public debt Russia will increase, but will not exceed 20 percent of GDP. This indicator is named in the activity plan of the Ministry of Finance for 2022–2027, with which got acquainted “Vedomosti”.
A year ago, in a document on the period 2021-2026, it was about increasing borrowing to 22 percent of GDP, so we can talk about tightening the department’s policy.
The current plans are to bring the level of public debt to 29.9 trillion rubles (17.5 percent of GDP) by 2025, so that domestic debt accounts for 25 trillion and external debt 4.9 trillion. In 2021, the figure was 20.9 trillion rubles (16 percent of GDP), of which 16.5 trillion accounted for domestic borrowing. Thus, the increase in public debt is supposed to be provided at the expense of internal reserves.
In 2023, it is planned to increase the indicator to 25.4 trillion rubles (16.9 percent of GDP, domestic debt – 20.7 trillion), in 2024 – to 27.7 trillion rubles (17.3 percent, 22.8 trillion ). As of the end of October, Russia’s internal public debt is 16.2 trillion rubles, external – 56.6 billion (3.1 trillion rubles at the exchange rate Central Bank).
State borrowings in the coming years should become the main sources of covering the budget deficit. In the next it is planned with a deficit of 2.9 trillion rubles, in 2024 – 2.2 trillion, in 2025 – 1.3 trillion. At the same time, the share of debt service spending should not exceed seven percent of total spending in 2023 and 7.5 percent in 2024.
Earlier this week State Duma accepted amendments to the Tax Code that increase the tax burden on the gas and oil industries in 2023-2025. It is assumed that in the next three years these measures will bring an additional two trillion rubles to the budget.