“The Russian budget lacks funds and the country’s governors seek to get into their pockets to citizens.”, – WRITE: www.unian.ua
The Russian budget lacks funds and the country’s governors seek to get into their pockets to citizens.
Russians can again raise taxes / photo GettyimagesThe Government of the Russian Federation is considering increasing the value added tax rate to keep the budget deficit under control and save reserves. Earlier, the Kremlin dictator Vladimir Putin promised that by 2030 the taxes would not be raised, Reuters writes.
The draft budget agreed with Putin will be sent to Parliament at the end of September.
In order to find money for the invading war against Ukraine, this year in the Russian Federation increased taxes on personal income and corporate tax. At the same time, the government still had to triple the federal budget deficit in May up to 1.7% of the gross domestic product (GDP). Now this figure exceeds the planned.
In order to reduce the deficit, the government discusses an increase in value added tax (VAT) from 20% to 22%. Russia remains only to raise taxes, because almost nothing can be reduced – neither military expenditures nor social expenditures, say Reuters sources in the Russian Federation.
According to the publication, VAT revenues amounted to 37% of the federal budget revenues in 2024. The possible increase in the tax will reduce the projected deficit by 2026. Earlier, an increase in VAT by 2% in 2019 contributed to the increase in inflation by 0.6 percentage points.
Russia’s economy continues to increase by increasing government spending. However, GDP dynamics are expected to slow down to about 1% of 4.3% last year, and inflation will remain above 8% in the country, where much of the workforce and 40% of the income are now on defense and security.
Problems of the Russian economy – the latest newsIn order to save his economy, Putin went to restore the system of hard labor of Stalin and Gulag. Condemned for minor crimes of Russians is sent to the mines of the north in the polar circle, where they work in conditions that can be compared to slave labor.
And the Russian ruble continues to become cheaper, updating the multi -year minimums to the dollar, euro and yuan. Such a long decrease in the ruble – 8 days in a row – the market has not observed since December 2022.
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