Moscow, August 8 /BNA/ – The Russian federal budget deficit sharply increased last month to a record level, surpassing the previous record set during the COVID-19 pandemic in 2020. According to data published today by the Russian Ministry of Finance, the financial deficit during the first seven months of this year reached 4.9 trillion rubles (61.8 billion dollars), exceeding the government’s target for the entire year by 3.8 billion dollars. Despite a 3% annual increase in general revenues during the first seven months, expenditures rose by more than 20%. The widening budget deficit threatens to undermine the progress made by the Central Bank of Russia in curbing inflation and may complicate the long-awaited monetary easing cycle. The central bank has repeatedly stressed that fiscal expansion is one of the main risks leading to inflation.