Since the breakup of the COMECON and the Soviet Union, trade disruptions and friction between Russia and the governments of the former Soviet republics had led to an enormous expansion of the fiscal deficit. The deficit was financed largely through sales of domestic government securities and borrowing from international financial institutions.

The US Central Intelligence Agency (CIA) estimated that in 2005 the Russian Federation's central government took in revenues of approximately $176.7 billion and had expenditures of $125.6 billion. Revenues minus expenditures totaled approximately $51.1 billion. Public debt in 2005 amounted to 15.6% of GDP. Total external debt was $230.3 billion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were r3,644.5 billion and expenditures were r3,348.6 billion. The value of revenues was us$119 million and expenditures us$109 million, based on an exchange rate for 2003 of us$1 = r30.6920 as reported by the IMF. Government outlays by function were as follows: general public services, 35.2%; defense, 11.4%; public order and safety, 8.2%; economic affairs, 4.9%; environmental protection, 0.3%; health, 1.1%; recreation, culture, and religion, 0.9%; education, 3.0%; and social protection, 35.1%.