Russia Swings to $29 bln First-Quarter Budget Deficit

EconEye Admin

4 years ago

Russia’s federal budget balance sank to a deficit of 2.4 trillion roubles ($29 billion) in the first quarter of 2023. Spending accelerated 34% in the quarter to 8.1 trillion roubles. In the same quarter of 2022, Russia posted a surplus of 1.13 trillion roubles.—reuters.com

Answer the following questions to check your understanding of the story.

What were Russia’s government receipts in the first quarter of 2023?

Russia’s government receipts in the first quarter of 2023 were ____________.

a) 5 trillion roubles

b) 97 trillion roubles

c) 7 trillion roubles

d) 1 trillion roubles

Wrong! - Russia has a budget deficit of 2.4 trillion roubles and spending of 8.1 trillion roubles. What is the relationship between outlays, receipts, and a government budget deficit?

Correct! - Russia has a budget deficit of 2.4 trillion roubles and spending of 8.1 trillion roubles, so government receipts must be 2.4 trillion roubles less than spending. Government receipts are 8.1 trillion roubles – 2.4 trillion roubles, which is 5.7 trillion roubles.

How did Russia’s government debt change in the first quarter of 2022 and the first quarter of 2023?

Russia’s government debt ____________ in the first quarter of 2022 and ____________ in the first quarter of 2023.

a) didn’t change; increased

b) increased; decreased

c) decreased; increased

d) decreased; didn’t change

Wrong! - Government debt is the sum of past budget deficits minus the sum of past budget surpluses? Does a budget deficit increase or decrease the debt? Does a budget surplus increase or decrease the debt?

Well Done! - Government debt is the sum of past budget deficits minus the sum of past budget surpluses. In the first quarter of 2022, the government had a budget surplus so government debt decreased. And in the first quarter of 2023, the government had a budget deficit so government debt increased.

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