The Russian government spending sector had total revenues of USD1,091.2 billion (bln) in 2017, representing a compound annual growth rate (CAGR) of 6.3 percent between 2013 and 2017. In comparison, the Czech and the Polish sectors grew with CAGRs of 2.8 percent and 2.8 percent respectively, over the same period, to reach respective values of USD106.4 bln and USD243.2 bln in 2017.

Russian government budgets are generally reliant on oil and gas revenues, but successive Russian finance ministers have sought some caution. A decline in oil prices has impacted government revenues, with a 17-percent drop between 2015 and 2016. However, non-oil revenues were increased by 11 percent, and the government is content to run a moderate deficit and store any excess oil revenues.

The Russian aircraft industry has received significant state backing, with many core companies brought into the United Aircraft Corporation stable, and its national champion status sees its products win virtually all domestic contracts. The social protection segment was the sector’s most lucrative in 2017, with total revenues of USD329.8 bln, equivalent to 30.2 percent of the sector’s overall value. The healthcare segment contributed revenues of USD105.7 bln in 2017, equating to 9.7 percent of the sector’s aggregate value.

Social protection remains the largest segment in Russia, and the government has announced that the retirement age would be increased from 55 to 60 for women and from 60 to 65 for men in 2019 in order to keep enough people working and reduce the amount spent on pensions.