It’s a bit different though. The fall for Russia is actually massive, since last year they were still having a big surplus, while now they are facing a pretty serious deficit. Moreover this deficit comes at a time of increased spending and decreasing oil revenue, which makes up a very big part of the Russian GDP and most of the government’s budget.
A shrinking economy with higher expenses and growing deficit is a potent combination and will probably call for even more taxes as the government tries to find a substitute to falling oil revenues.
Can you give a citation for “decreasing oil revenue”? From my understanding their oil revenue has not decreased, it’s just that it’s not to the same partners (or at least not without passing through intermediaries like India where people can then buy it and not feel guilt by association).
It’s a bit different though. The fall for Russia is actually massive, since last year they were still having a big surplus, while now they are facing a pretty serious deficit. Moreover this deficit comes at a time of increased spending and decreasing oil revenue, which makes up a very big part of the Russian GDP and most of the government’s budget.
A shrinking economy with higher expenses and growing deficit is a potent combination and will probably call for even more taxes as the government tries to find a substitute to falling oil revenues.
Can you give a citation for “decreasing oil revenue”? From my understanding their oil revenue has not decreased, it’s just that it’s not to the same partners (or at least not without passing through intermediaries like India where people can then buy it and not feel guilt by association).