Putin says Russia’s public debt remains among the lowest in the world

Thursday 03 September 2026 - 13:00

By: Azzat Manal

Putin says Russia’s public debt remains among the lowest in the world

Russian President Vladimir Putin has defended the country’s fiscal position, saying Russia continues to have one of the lowest public debt levels globally despite the presence of a budget deficit.

Speaking during the plenary session of the Eastern Economic Forum in Vladivostok, Putin acknowledged that Russia is running a fiscal deficit but argued that its current level does not pose a serious threat to the economy. He stressed that the government should focus less on simply reducing spending and more on ensuring that public funds are allocated efficiently and according to national priorities.

Putin also addressed inflation, which he said was running at around 6.3% annually. While acknowledging the need to bring inflation under control, he warned against excessive economic tightening that could weaken economic activity. The president said policymakers needed to strike a balance between price stability and maintaining economic growth.

According to figures previously cited by Putin, Russia’s public debt stood at around 16.4% of gross domestic product at the end of 2025. He contrasted this with the significantly higher debt levels recorded across the eurozone, where public debt was estimated at about 81.7% of GDP in the same year.

The president highlighted the debt burdens of several major European economies, pointing to Greece at around 146% of GDP, Italy at 137%, France at 115% and Belgium at 108%. The comparison was used to underline Moscow’s relatively low level of sovereign debt.

Low public debt gives governments greater room to manage economic shocks and finance priorities, although fiscal stability also depends on factors such as budget revenues, borrowing costs, economic growth and inflation. For Russia, energy revenues, government spending and the broader impact of international sanctions remain important factors in the country’s fiscal outlook.

Putin’s comments come as the Russian government continues to balance spending on infrastructure, social programs and economic development with the demands of national defence. Authorities have repeatedly emphasized the need to maintain fiscal discipline while supporting strategic sectors of the economy.

The Eastern Economic Forum, held in Vladivostok, brings together Russian and international representatives to discuss investment, infrastructure, logistics, technology and economic development in the Russian Far East. This year’s program includes more than 70 sessions focused on regional development, international cooperation and attracting investment.

The debate over Russia’s public finances is expected to remain closely watched as policymakers seek to control inflation without putting excessive pressure on economic activity. Putin’s latest remarks signal that Moscow intends to prioritize targeted and efficient spending while maintaining what it considers a manageable fiscal position.