Russia Raises Taxes on Miners, Investors to Fund Ukraine War
- Fiscal documents obtained by Reuters show Russia will cut funding for welfare, education, and healthcare in the 2027 state budget to help cover soaring military spending.
- Russia's budget situation has deteriorated throughout the 4.5 years of war in Ukraine, forcing the government to tap fiscal reserves and increase borrowing to sustain military operations.
- Defence spending is slated to reach 17.1 trillion rubles in 2027, around 27% more than the 13.5 trillion rubles originally budgeted and the highest figure since 2022.
- Debt-Servicing costs will rise by 21.6% in 2027 compared with initial plans, while new tax measures including a 22% value-added tax on foreign online marketplaces aim to generate revenue.
- The State Duma, where the United Russia party holds a constitutional majority, is expected to approve the budget, though utility tariff increases have angered some Kremlin supporters.
45 Articles
45 Articles
The Russian Finance Ministry last week announced further tax increases to cover war expenses. The Russian economy is increasingly affected by the war, the welfare fund cushion has been exhausted, and oil revenues are lower than planned despite the rise in the price of black gold, so resources must be sought elsewhere.
Russian President Putin presents a superlative armaments budget, showing where to save: social, health, education. Nato is unimpressed.
The Russian state budget for 2027 provides for a reduction in spending on social services, healthcare and health care...
A total of seven percent of the expenditure is to be cut for veterans, pensioners and mothers, for example.
Russia wants to cut social spending in the face of drastically rising spending on arms. According to the authorities, the victory in the war against Ukraine takes precedence over other concerns.
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