Business · Economy · 5 hrs ago
Russia proposes new taxes as its budget deficit reaches $72 billion
Russia’s budget deficit reached $72 billion through August, as military spending and weak economic growth put pressure on state finances.
President Vladimir Putin’s government has proposed higher taxes on mining companies and people earning income from interest, dividends or property sales.
The measures target a narrower group than last year’s broad tax increase, which included higher VAT and more small businesses paying it.
Parliament approved the 2027–2029 budget in its first of three votes on Thursday.
Some other proposals would add charges and VAT to certain foreign goods bought online, with measures due to take effect on January 1.
The government is seeking more revenue as war spending rises, while sanctions, high interest rates, labor shortages and Ukrainian strikes on energy infrastructure weigh on the economy.
The added costs could leave less money for civilian needs, though a consultant said Russia has enough financing to cover the deficit in 2027 and probably 2028.
Russia’s budget deficit reached 5.8 trillion rubles, or $72 billion, through August, according to the Kyiv School of Economics.
The government has proposed new taxes on mining companies and people with investment income, property-sale proceeds and bank interest.
The proposals accompany Russia’s 2027-2029 state budget, which parliament approved Thursday in the first of three votes.
The deficit exceeded the revised target of 4.8 trillion rubles as military spending rose and economic growth remained weak.
Analyst Chris Weafer said Russia could finance the deficit in 2027 and probably 2028, but higher taxes would raise costs for households and businesses.
- Who
- The Russian government proposed the taxes. They would affect mining companies and people with certain types of income.
- What
- The proposals include a windfall profits tax on mining companies and higher rates on some income. They come as the budget deficit reached $72 billion through August.
- When
- The budget was approved Thursday in its first of three votes. The article was published October 29, 2026.
- Where
- Russia.
- Why
- The deficit rose amid military spending and weak economic growth. The government is seeking to raise revenue.
This story does not have two clearly opposing sides.
Russia’s budget deficit reached 5.8 trillion rubles, according to the Kyiv School of Economics.
The government announced a series of tax increases.
Parliament approved the 2027-2029 state budget in the first of three votes.
- Deficit through August
- 5.8 trillion rubles ($72 billion)
- Revised deficit target
- 4.8 trillion rubles
- Proposed mining tax
- 20%-30% windfall profits tax
- Proposed tax on some income
- Rates of 13% to 22%
- Budget period
- 2027-2029
What people are saying
But that is at the expense of raising taxes, of increasing costs for households as well as business.
They need money for state coffers, they need to collect more from people, from ordinary people
What can you do?
Everyone knows perfectly well that the money’s going for the military operation, right?