The share of federal budget accounts for a significant portion of the distribution process, which is the allocation of funds between sectors of the economy, manufacturing and industrial areas, regions of the country.
No later than October 1, the Russian government prepares and introduces a draft federal budget for the next fiscal year to the State Duma.
Difficulties in implementing fiscal reforms aimed at raising government revenues and a dependence on short-term borrowing to finance budget deficits led to a serious financial crisis in 1998.
The Russian economy bounced back quickly from the 1998 crisis and enjoyed over 9 years of sustained growth averaging about 7% due to a devalued ruble, implementation of key economic reforms (taxation, banking, labor and land codes), tight fiscal policy, and favorable commodities prices.
Although the government revised its budget projections during 2009 to reflect lower oil prices and the effects of the economic crisis, it ended the year with a budget deficit amounting to 7.9% of GDP, which it financed from the Reserve Fund, one of the government's two stabilization funds.
[4] As a result of the international sanctions during the Russo-Ukrainian War, budgetary shortfalls would normally need to be covered by the Russian National Wealth Fund, said Finance Minister Anton Siluanov.
[9] More than 20 million people in Russia (14 percent of the population) live below the poverty line, and the invasion of Ukraine is prioritized ahead of education, health care, infrastructure, social payments and highways, railroads, bridges, airports, and other basic infrastructure.