Siluanov called the budget for 2025 quite tough

The federal budget for 2025 is quite tight. This was stated by Finance Minister Anton Siluanov on December 4 at the macroeconomic session of the VTB investment forum "Russia Calling!".

He emphasized that the budget and credit are two components that make money in the economy, so it is necessary to be extremely careful and accurate in the distribution of funds.

"2025 is a rather tight budget. It has, firstly, a deficit by a percentage of GDP, secondly, it is balanced at the primary level," Siluanov said.

The finance minister specified that the budget deficit next year will amount to 1% of GDP, which is "expensive" in the current conditions. He also noted that the ministry perfectly understands the main task - to reduce inflation.

"We understand that the Central Bank raises the rate, fighting inflation, we have additional costs. So for the budget, of course, the rate is costly, but we understand that we are going for it in order to solve the main task, when then for everyone the cost of money will go down, we are also waiting for that. It is very important for the budget," Siluanov emphasized.

The XV VTB Investment Forum "Russia Calling!" takes place from December 4 to 5 at the World Trade Center in Moscow. Its main theme is "The Future of Capital and Future Capital".

Russia has adopted a federal budget for three years. What you need to know

On November 27, the Federation Council approved the law on the federal budget for 2025 and the planning period of 2026-2027. In 2025, the federal budget revenues are expected to grow to Br40.296 trillion. In addition, the budget provides Br21.3 trillion for three years for social policy, which includes indexation of pensions, social benefits and support for families with children. In the same month, Russian Prime Minister Mikhail Mishustin called the draft budget of the Russian Federation for 2025-2027 balanced.

Prior to that, on November 26, Siluanov said that the Russian economy is overheating at the moment, and the Russian Central Bank (CB) is trying to cool it down. Stimulus from the Ministry of Finance contradicts these efforts and would only cause further growth of the key rate, so the ministry will shift to a balanced budget policy in the next three years, and will make support for certain industries point-by-point.

On October 25, the Central Bank's Board of Directors raised the key rate to 21%. Later, on November 19, the head of the Central Bank Elvira Nabiullina said that if Russia does not face additional economic shocks, the regulator will be able to start reducing the key rate in 2025. She pointed out that such a tactic of the Central Bank will allow to reduce inflation in the country to the level of 4.5-5% in 2025, and then stabilize this indicator at about 4%.