MOSCOW, April 8. /TASS/. Russia’s federal budget deficit in Q1 2024 amounted to 607 bln rubles ($6.5 bln), according to preliminary figures, the Finance Ministry reported.

"According to preliminary estimates, federal budget revenues in Q1 2024 amounted to 8.719 trillion rubles, which is 53.5% higher than revenues received in Q1 2023," the ministry said.

Preliminarily, federal budget expenditures totaled 9.326 trillion rubles ($100.9 bln) in Q1 2024, which is 20.1% higher than in the previous year.

"A slightly increased expenditure financing in February-March 2024 is related to prompt conclusion of contracts and prepayment on certain contracted expenditures among other things," the report said.

Execution of the federal budget meets the parameters of initial structural deficit defined by the law on the budget, while transactions on use/formation of funds of the National Wealth Fund (NWF) are carried out within the fiscal rule, the ministry added.

"The Finance Ministry of Russia has started executing instructions on implementation of the President’s Address to the Federal Council, including regarding financing of programs for development and formation of perspective financial plan for 2025-2030. The suggested parametrization of the revenue base and expenditure commitments of federal budget ensures initial structural balance starting 2025 in accordance with the fiscal rule’s parameters," the ministry noted.

This will help curb the influence of transactions of the budget sector on inflation process, whereas in the midterm it will support the sustainability of the country’s budget system and strengthen Russia’s macroeconomic and financial stability, the ministry said.