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Russian government borrowing surges – RIA | |
(about 7 hours later) | |
The national debt has reached 17% of GDP | |
Russia’s state debt grew by 11.6% in the first nine months of the year as the government borrowed funds to plug a budget gap, RIA Novosti reported on Wednesday. | Russia’s state debt grew by 11.6% in the first nine months of the year as the government borrowed funds to plug a budget gap, RIA Novosti reported on Wednesday. |
State borrowing between January and September soared, with debt reaching 17% of Russia’s GDP, data showed. | State borrowing between January and September soared, with debt reaching 17% of Russia’s GDP, data showed. |
Officials pointed out that even with a noticeable rise, national debt remains below 20% of GDP, placing Russia among the countries with the lowest level of state arrears. By comparison, state debt in the US and Italy exceeds 100% of GDP, while in Japan it stands at 260%. | Officials pointed out that even with a noticeable rise, national debt remains below 20% of GDP, placing Russia among the countries with the lowest level of state arrears. By comparison, state debt in the US and Italy exceeds 100% of GDP, while in Japan it stands at 260%. |
According to economists, Russia’s public debt growth remains moderate due to a low budget deficit, as the country continues to invest in major projects and industries despite unprecedented sanctions pressure from the West. | According to economists, Russia’s public debt growth remains moderate due to a low budget deficit, as the country continues to invest in major projects and industries despite unprecedented sanctions pressure from the West. |
Increased state borrowing has helped Russia halve its budget deficit, the Finance Ministry has reported. | Increased state borrowing has helped Russia halve its budget deficit, the Finance Ministry has reported. |
Russia’s budget gap has narrowed and will be significantly lower than previous government expectations as energy revenues and the broader economy have recovered, Finance Minister Anton Siluanov said earlier this month. | Russia’s budget gap has narrowed and will be significantly lower than previous government expectations as energy revenues and the broader economy have recovered, Finance Minister Anton Siluanov said earlier this month. |
According to the latest estimates, the budget gap will total 1% of GDP this year, significantly lower than earlier projections which placed the deficit at 2.9 trillion rubles ($32.8 billion), or 2% of GDP. | According to the latest estimates, the budget gap will total 1% of GDP this year, significantly lower than earlier projections which placed the deficit at 2.9 trillion rubles ($32.8 billion), or 2% of GDP. |
For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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