Russia's federal budget deficit reached 4.6 trillion rubles in the first three months of 2026, already exceeding the 3.8 trillion ruble deficit set for the year. According to Ministry of Finance data, the budget deficit during this period increased by 2.6 trillion rubles compared to the same period last year. Total revenues dropped 8.2% to 8.3 trillion rubles, while expenditures rose 17% to 12.9 trillion rubles. Tax revenues from the energy sector fell 45% to 1.4 trillion rubles. Non-oil and gas tax revenues, on the other hand, increased by 7.1% to 6.9 trillion rubles, but this increase could not compensate for the decline in energy revenues. The Ministry of Finance stated that the budget is being executed in line with structural deficit targets, and it is anticipated that an increase in energy prices in the second half of the year due to the war in the Middle East could positively impact budget revenues. Russia, as the world's second-largest oil exporter, continues to earn significant income from high oil prices.