In a rare admission, Russian Prime Minister Mikhail Mishustin acknowledged that the country's budget deficit is increasing at a faster pace than the government had anticipated. This statement marks a significant departure from the government’s public assurances that there are no serious fiscal problems. Mishustin revealed that he had engaged in extensive discussions with President Putin and other government members to explore various options for addressing the budgetary shortfall.

During these discussions, which Mishustin mentioned took place late into the night at the presidential residence, he emphasized the importance of aligning the government's approach with the Central Bank when deciding on funding solutions for the deficit. However, he refrained from detailing any concrete measures that were considered during the meeting. The context of this acknowledgment comes amid declining revenues from oil and gas, which are crucial to Russia's economy, driven by falling oil prices, discounts on oil sales, and the strengthening of the ruble.

The implications of Mishustin's statements are significant as they highlight the growing fiscal challenges facing the Russian government amid a backdrop of economic sanctions and fluctuating global oil markets. The admission could signal a shift in policy decisions in the near future as the government grapples to stabilize its financial situation in light of these pressures.