Russia recorded a federal budget surplus of 660 billion rubles in August as major state companies paid annual dividends, according to Ministry of Finance data.
The monthly surplus, equivalent to 7.7 billion dollars, is the largest recorded by the country since August 2025, according to calculations published by Bloomberg. Dividend payouts from state-owned banks and corporations generated 691 billion rubles for the national treasury during the month.
Non-oil and gas revenues, which include dividend payments from state-backed firms, rose by 17 percent compared to the same period last year. That surge helped offset a 16 percent increase in total state spending. Government expenditures remain elevated due to heavy funding for Russia's war against Ukraine, with no end to the military conflict in sight.
State-owned enterprises represent a core pillar of Russia's federal budget structure. Dividends from state banks and major industrial firms provide critical non-energy revenue, helping cushion public finances against international trade restrictions and fluctuating global commodity prices.
Rising deficits and revised forecasts
Despite the strong performance in August, Russia's cumulative budget deficit for the first eight months of the year reached 5.8 trillion rubles. That total significantly exceeds the government's full-year target of 3.8 trillion rubles, which represented 1.6 percent of gross domestic product.
A national budget deficit occurs when total state spending exceeds revenues collected through taxes and state enterprise profits. To address the widening gap, the Russian government is required to submit revised budget forecasts to officials by the end of September.
Record military spending and economic stagnation
The deficit has been driven by mounting military costs. On September 7, reports indicated that federal budget spending on the war against Ukraine reached a record 10.687 trillion rubles during the first half of 2026. Expenditure on the armed forces and arms manufacturing surged by 30 percent, or 2.46 trillion rubles, compared to the first half of the previous year.
At the same time, broader economic expansion has virtually stalled. Gross domestic product grew by just 0.2 percent over the first five months of the year. Russian leader Vladimir Putin urged officials to stimulate investment across the domestic economy.
However, major Russian companies are cutting back on capital investments rather than expanding operations. Corporate leaders cite shrinking corporate profits, high bank lending rates, and ongoing economic uncertainty as primary reasons for reducing capital expenditure.
