The Russian State Duma has urgently allocated 1.5 trillion rubles for the war in Ukraine.

The State Duma of the Russian Federation urgently allocated 1.5 trillion rubles for the war in Ukraine

The State Duma of the Russian Federation approved an amendment to the Budget Code that will allow for an increase in the total expenditure of the federal budget in 2024 by up to 1.5 trillion rubles ($15.4 billion at the current exchange rate) without making changes to the budget law. The decision was made on October 22, according to Russian media reports.

As noted in the explanatory memorandum, the adoption of the bill enables the allocation of additional budget funds in 2024 for "priority objectives" as defined by Vladimir Putin.

Earlier, during a parliamentary discussion of the bill, Russian Finance Minister Anton Siluanov acknowledged that this year there have been additional funding needs for various tasks, primarily the war in Ukraine.

"These expenses are for subsidizing interest rates on a number of programs, primarily mortgage programs, and due to the increase in rates, over 500 billion rubles are needed this year. Additionally, more funds are required for debt servicing, as rates have also risen, and there is a need for an increase in expenditures for these purposes.

He stated that in this regard, the government is requesting permission to increase federal budget expenditures this year. As a result, they will amount to 39.4 trillion rubles, with the deficit rising to 3.3 trillion rubles, or 1.7% of GDP.

The Accounts Chamber of the Russian Federation noted that the bill does not specify sources for covering the increased expenditures, but it was supported for adoption.