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Putin's Budget Plans: Defense Funding and Tax Hikes Ahead

10/2/2025

44 10 Full Breakdown

Center

Putin Discusses Annexation

On June 30, 2025, President Vladimir Putin met to discuss development of annexed Ukrainian regions.
The 2026 draft budget keeps defense spending flat, funded by tax hikes to shrink a 1.6% GDP deficit.
Growth is projected at 1.3% in 2026.
VAT from 20% to 22% and small-business VAT threshold from 60 million to 10 million rubles, plus 5% gambling tax.

Right

Russia Faces Economic Struggles

Russia posted a $50 billion deficit from January through August 2025 due to oil and gas revenue.
Debt-servicing costs are set to rise 22% in 2026, totaling 9% of the budget.
Manufacturing contracted for a fourth straight month in September; S&P Global PMI registered 48.2.
Inflation remains near 8% after Bank of Russia cut to 17%; analysts warn stagflation risks.

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Putin Discusses Annexation

On June 30, 2025, President Vladimir Putin met to discuss development of annexed Ukrainian regions.
The 2026 draft budget keeps defense spending flat, funded by tax hikes to shrink a 1.6% GDP deficit.
Growth is projected at 1.3% in 2026.
VAT from 20% to 22% and small-business VAT threshold from 60 million to 10 million rubles, plus 5% gambling tax.

1 / 2