Russia's budget deficit reaches $1.4 bln

The surplus for the same period in 2014 was at RUB 1.273 trillion ($1 – RUB 69). As of December 1, federal budget revenues totaled RUB 12.174 trillion, while the expenses amounted to RUB 13.131 trillion, the report says.

The decline in budget revenues of the Russian Federation is directly linked to the fall in oil prices, since 49% of the federal budget (about 37% of the total budget) are revenues from the sale of hydrocarbons. Another 6% are customs duties on imports (goods purchased for funds from the sale of hydrocarbons), and 25% come in VAT from imported goods (at the expense of the same petrodollars).

Read alsoRussian ruble hits new minimum amid collapse in oil pricesThe government initially drew an average oil price of $96 per barrel and the exchange rate of RUB 37.7 to the dollar in the budget for 2015. In spring, after the budget adjustments, the basis for the calculations changed dramatically — to $50 per barrel and RUB 61.5 to the dollar.

Russian Finance Minister Anton Siluanov predicts a further decline in oil prices and the growth of the budget deficit, which could disrupt plans for social obligations. According to him, the budget deficit in 2016 may exceed the predicted 3%. Revenues in the budget will decrease due to lower revenues of the Russian oil and gas companies and a weak ruble. Siluanov believes that oil prices could fall below $40 per barrel. The situation is complicated by the Western sanctions.