The Ru economy has begun to collapse. Thread.
Federal budget revenue growth has been slowing for 5 quarters in a row and in Q1 25 it was only +3.7%. Look at the chart, the last 5 quarters the revenue growth rate was +54%_+25%_+25%_+11%_+4% 1/
If we look at the rate of income growth on a monthly basis, we will see that the situation is even worse.
Over the past 15 months, the growth rate has fallen from +77% to 0%
The situation became especially catastrophic in Q1 25:
Jan 25: +11%
Feb 25: +2%
Mar 25: +0% 2/
Now let's look at the structure. About 1/3 of revenues are oil, 2/3 are non-oil.
Oil revenues grew by 60-90% at the beginning of 2024, in Feb-Mar25 they fell by 20% due to the fall in oil prices, and this does not even take into account the fall in the last week. 3/
Non-oil revenues started 2024 at +85%, but since the second half of the year the growth rate has slowed from +37% to +10%. Ru killed the non-military sector of the economy. Labor shortages, expensive loans and cuts in support programs have brought down the civilian sector.
4/
Increased military spending and a lack of revenues led to a sharp increase in government debt, which resulted in rising inflation and higher costs of servicing government debt.
Cost of servicing government debt increased by 44% in 1Q25 5/
Slower revenue growth and higher debt servicing costs mean that 8% of revenues must be spent on debt servicing. Taking into account the costs of mortgage programs and subsidies for preferential loans for businesses, the share of expenses that must be spent on 6/
service, will be 13% of income.
And then the moment will come when Ru, in conditions of falling income, will not be able to service its debt obligations.
DEFAULT - REVOLUTION - COLLAPSE OF THE REGIME.
The end. 7/
β’ β’ β’
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Russian Federation budget execution data for December has been released.
Revenue: +8%
Of which:
- Oil and gas: -43%
- Non-oil and gas: +33%
Expenses: -20%
Deficit: (-1,369 billion rubles) Last December, there was a deficit (-3,095 billion rubles) 1/
The most astonishing thing is that budget expenditures fell by 20% in December!!!!
This will lead to a significant slowdown in the entire economy! 2/
Budget revenues in December grew by 8% year-on-year.
I suspect they added some non-tax funds (fines, seizures, etc.) to the budget. 3/
Kuzbass. A massive crisis in the region.
I've collected all the data, and it's very bad for them. 1. The coal industry's workforce was cut by 8,500 (-8.8% y/y) 2. Nominal wage growth since the beginning of the year has fallen from +13% to +4%, while in real terms it's (-4%) 1/
3. Utility rates increased by 21% over the year, with heating and hot water rates increasing by 24% year-on-year. 4. Wage arrears began to grow.
In three months, they grew from zero to 225 million rubles. The arrears are owed to 2,800 employees.
2/
The first official data on staff reductions and wage declines has emerged. So far, this only covers the Kuzbass coal industry.
Read this thread
1/
Here are official figures from the Kuzbass Ministry of Coal Industry.
Amid a decline in coal production for the second year running, layoffs began in March.
By November, more than 8,600 employees, or one in every 11, had been laid off!
2/
But the situation didn't stop with layoffs alone. In August, wages began to be cut for those who remained employed. As a result, cumulative wage growth for the first two months was +13%, but by August, it had only increased by +4%. This means that wages actually fell in August 3/
Important information!
Consumer spending in Russia has begun to decline in real terms.
In December, spending fell by 0.9% year-on-year.
Short thread 1/3
2/3 The largest decline was in spending on food and cafes, bars, and restaurants.
Note that the graph shows the dynamics in nominal terms. This means that in real terms, spending is 7% lower due to inflation.
3/3 The decline in all segments of consumer spending began in earnest in the summer.
Just at this time, information began to emerge about the transition to a four-day workweek at factories and enterprises.
THIS IS A RECESSION !!!
Sensation
Russia's federal budget revenues plummeted 12% year-on-year in October!
Thread
Federal budget revenues in October - 2986 billion rubles (-12%) 1/
Revenue in October: RUB 2,986 billion (-12%)
Of which:
- Oil and gas revenue: RUB 889 billion (-27%)
- Non-oil and gas revenue: RUB 2,096 billion (-4%) 2/