Due to the collapse of oil prices, the Russian Federation government reduced economic costs and continued to remove funds from the National Welfare Fund.
Russian leader Vladimir Putin signed budget amendments for 2025, providing a significant reduction in economic costs after the collapse of oil and gas revenues. The costs are cut into several major state programs, as the budget deficiency has exceeded the forecast. The Moscow Times reported this on Tuesday, June 24.
Five major state programs have been reduced for cuts. The industrial development program is most popular, losing 97.15 billion rubles. Inside the outline of this program planned by the Kremlin of 2030 to increase the manufacture of civilian products by 40%.
While the “scientific and technical development of the Russian Federation” program will lose 22.17 billion rubles. Its purpose is to raise Russia to eight of the world’s leaders in terms of scientific research.
At the same time, 20% reduced the financing of the aircraft industry development program – from 49 billion rubles to 39.4 billion. This program provided for the creation of thousands of civilian aircraft to replace the west.
Ship labor costs were reduced by 4.1 billion rubles to 24.1 billion, and for the energy development program – by 7.2 billion, up to 62.6 billion rubles.
The cause of the new cuts is the collapse of oil prices and the strengthening of the ruble. Instead of the expected 10.8 trillion rubles from oil and gas revenues, the Russian Federation’s budget will receive only 8.3 trillion, which is 24% less. During the five months of 2025, energy from energy was reduced by 14%, in May – by 34%.
It is expected that Russian budget deficiency will reach 3.8 trillion rubles, which has exceeded the initial plan of 1.2 trillion.
The Russian Federation’s budget was drawn based on the calculation that the Urals oil price was $ 70 per barrel, and the dollar rate was 95 rubles. However, in the spring, the oil price fell to $ 50, in turn, the ruble was strengthened at 80 per dollar.
In response, the Ministry of Finance of the Russian Federation has reduced the average unpredictable oil price to $ 56 and is ready for further reduction in costs. According to the Russian Federation Minister Anton Siluanov, in particular, the option of revising a budget rule in charge of using funds from the National Welfare Fund is considered.
In June 2025, the volume of liquid ownership of FNB was reduced to 2.8 trillion rubles. In the last three years, government reserves have dropped to an equivalent dollar – from $ 113.5 billion to $ 37.4 billion. Analysts are warning if oil prices remain low, FNB will be completely depleted by 2026.
Earlier in Russia, an internal conflict took place between the government and the Central Bank. The conflict arose because of a 21%record account, which prevented the economy and blocked investments in the civilian sector.
Resources for the economic growth of the Russian Federation are worn
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.