Updated

Russia's federal budget deficit reached 5.8 trillion rubles, or 2.5% of GDP, over the first eight months of 2026, according to a preliminary Finance Ministry estimate, one and a half times larger than the same period last year. The figure already far exceeds authorities' full-year projection of a 3.8 trillion ruble deficit, or 1.6% of GDP. Despite the widening gap, the Kremlin has downplayed the shortfall as no cause for concern, even as the war continues to strain state finances through military spending and sanctions-related economic pressure.