Russians Face Higher Taxes, Fees, and Utility Rates, All to Keep the War Going....

Russians Face Higher Taxes, Fees, and Utility Rates, All to Keep the War Going. Alexandra Prokopenko of Carnegie Politika on the New Draft Budget

Russia’s Finance Ministry has presented a draft budget for 2027 and plans through 2029. According to Reuters, the authorities promise to cut the deficit and strengthen financial discipline. But this will not be done by reducing spending on the war. The sources of replenishing the treasury are new taxes, higher tariffs, domestic borrowing, and a change to the budget rule. As a result, for every budget ruble spent in 2027 on social policy, health care, and education, two rubles will go to the army, police, Rosgvardiya, and the security services.

Alexandra Prokopenko, a senior fellow at the Carnegie Russia Eurasia Center in Berlin, analyzes the treasury plan for the next three years in an article for Carnegie Politika.

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New taxes, fees, higher utility rates, and a lower Central Bank rate: the authorities need all of this to keep the war going. Alexandra Prokopenko…

The Russian Finance Ministry has presented a draft budget for 2027 and plans through 2029. According to Reuters, the government promises to reduce the deficit and strengthen financial discipline. But this will be done not by cutting military spending, but through new taxes, higher tariffs…