State Duma Passes 2026-28 Budget and Tax Increase Bills Текст: State Duma lawmakers on ThursdaypassedRussia’s three-year federal budget and a package of tax increases, bills aimed at shoring up government revenues as spending on the war against Ukraine remains a top priority for the Kremlin. Under the budget plan, the government expects revenue of 40.3 trillion rubles ($491.7 billion) next year and spending of 44 trillion rubles ($548.3 billion), leaving a projected deficit of 3.8 trillion rubles ($47.3 billion). Defense and national security will account for roughly 38% of all spending in 2026, or 16.8 trillion rubles ($209.5 billion), which is slightly lower than in the previous two years but still far above pre-war levels. Lawmakers sought to highlight funding for domestic programs, including more than 10 trillion rubles ($124.6 billion) for family support measures and 50 billion rubles ($623 million) for a state-backed charity foundation that assists soldiers fighting in Ukraine and their families. Although overall spending will remain broadly stable, budget allocations reveal that the Kremlin’s priorities continue to lie in foreign policy and defense. Alongside the budget plan, the State Duma approved a series of tax changes aimed at closing the fiscal gap created by soaring military expenditures and falling oil and gas revenues under Western sanctions. Russia’s value-added tax (VAT) will increase to 22% from 20%, a move expected to raise consumer prices higher. Economists, including those at the Financial Ministry, havesaidthey anticipate a modest rise in inflation as the VAT hike takes effect starting next year. More small businesses will also be swept into the tax system. The annual revenue threshold for companies required to pay VAT will drop from 60 million rubles ($732,000) to 10 million rubles ($122,000). Some lawmakers havewarnedthat the change could strain small businesses and individual entrepreneurs, many of whom earn less than 200,000 rubles ($2,500) a month after taxes and salaries. Economists estimate the full package, which also includes a new levy on betting company profits, could bring in nearly 3 trillion rubles ($35 billion) in additional revenue. State Duma Speaker Vyacheslav Volodin said Thursday that lawmakers had approved the federal budget and tax hikes “under difficult circumstances,” citing more than 30,000 sanctions imposed on Russia and what he called “unfriendly actions” by the EU targeting Russian assets. The 2026-28 budget passed with 349 votes, while 56 lawmakers — mostly from the Communist Party — abstained. Only one deputy, Anton Krasnoshantov of the ruling United Russia party, was recorded as voting against the bill, though his “no” vote was allegedly the result of a technical error. The federal budget and tax bills now head to the Federation Council, where they are expected to receive swift approval before being sent to President Vladimir Putin’s desk for his signature. | World | london-news-net.preview-domain.com

State Duma Passes 2026-28 Budget and Tax Increase Bills Текст: State Duma lawmakers on ThursdaypassedRussia’s three-year federal budget and a package of tax increases, bills aimed at shoring up government revenues as spending on the war against Ukraine remains a top priority for the Kremlin. Under the budget plan, the government expects revenue of 40.3 trillion rubles ($491.7 billion) next year and spending of 44 trillion rubles ($548.3 billion), leaving a projected deficit of 3.8 trillion rubles ($47.3 billion). Defense and national security will account for roughly 38% of all spending in 2026, or 16.8 trillion rubles ($209.5 billion), which is slightly lower than in the previous two years but still far above pre-war levels. Lawmakers sought to highlight funding for domestic programs, including more than 10 trillion rubles ($124.6 billion) for family support measures and 50 billion rubles ($623 million) for a state-backed charity foundation that assists soldiers fighting in Ukraine and their families. Although overall spending will remain broadly stable, budget allocations reveal that the Kremlin’s priorities continue to lie in foreign policy and defense. Alongside the budget plan, the State Duma approved a series of tax changes aimed at closing the fiscal gap created by soaring military expenditures and falling oil and gas revenues under Western sanctions. Russia’s value-added tax (VAT) will increase to 22% from 20%, a move expected to raise consumer prices higher. Economists, including those at the Financial Ministry, havesaidthey anticipate a modest rise in inflation as the VAT hike takes effect starting next year. More small businesses will also be swept into the tax system. The annual revenue threshold for companies required to pay VAT will drop from 60 million rubles ($732,000) to 10 million rubles ($122,000). Some lawmakers havewarnedthat the change could strain small businesses and individual entrepreneurs, many of whom earn less than 200,000 rubles ($2,500) a month after taxes and salaries. Economists estimate the full package, which also includes a new levy on betting company profits, could bring in nearly 3 trillion rubles ($35 billion) in additional revenue. State Duma Speaker Vyacheslav Volodin said Thursday that lawmakers had approved the federal budget and tax hikes “under difficult circumstances,” citing more than 30,000 sanctions imposed on Russia and what he called “unfriendly actions” by the EU targeting Russian assets. The 2026-28 budget passed with 349 votes, while 56 lawmakers — mostly from the Communist Party — abstained. Only one deputy, Anton Krasnoshantov of the ruling United Russia party, was recorded as voting against the bill, though his “no” vote was allegedly the result of a technical error. The federal budget and tax bills now head to the Federation Council, where they are expected to receive swift approval before being sent to President Vladimir Putin’s desk for his signature.

November 22, 2025

On Thursday, lawmakers in the State Duma passed Russia’s federal budget for the next three years, along with a series of tax hikes designed to bolster government revenues amid continued priority spending on the war in Ukraine by the Kremlin.

The proposed budget anticipates government revenues of 40.3 trillion rubles ($491.7 billion) for the upcoming year, while expenditures are projected at 44 trillion rubles ($548.3 billion), resulting in an expected deficit of 3.8 trillion rubles ($47.3 billion).

By 2026, defense and national security spending are projected to consume approximately 38% of the total budget, amounting to 16.8 trillion rubles ($209.5 billion). This marks a slight reduction from the previous two years but remains significantly higher than pre-conflict levels.

Lawmakers emphasized funding for domestic initiatives, including over 10 trillion rubles ($124.6 billion) earmarked for family support programs and an allocation of 50 billion rubles ($623 million) for a government-supported charity aimed at assisting soldiers and their families affected by the conflict in Ukraine.

While overall budget spending is expected to stay relatively stable, the allocations indicate that the Kremlin continues to prioritize foreign policy and defense over other areas.

In conjunction with the budget, the State Duma also ratified a number of tax reforms intended to address the financial shortfall stemming from increased military spending and declining oil and gas revenues due to Western sanctions. The value-added tax (VAT) is set to rise from 20% to 22%, a change anticipated to drive consumer prices higher.

Economists, including those from the Finance Ministry, predict that inflation may experience a modest uptick following the VAT increase starting next year.

Additionally, more small businesses will be included in the VAT system, as the annual revenue threshold for VAT liability will be reduced from 60 million rubles ($732,000) to 10 million rubles ($122,000).

Some lawmakers have expressed concerns that this shift could place additional burdens on small businesses and individual entrepreneurs, many of whom earn less than 200,000 rubles ($2,500) monthly after taxes.

Economists estimate that the entire package, which also introduces a new tax on the profits of betting firms, could generate approximately 3 trillion rubles ($35 billion) in extra revenue.

On Thursday, State Duma Speaker Vyacheslav Volodin remarked that lawmakers passed the federal budget and tax increases “under challenging circumstances,” referencing over 30,000 sanctions imposed on Russia as well as what he termed “unfriendly actions” by the EU targeting Russian assets.

The budget for 2026-2028 received 349 votes in favor, with 56 lawmakers—primarily from the Communist Party—abstaining. Only one deputy, Anton Krasnoshantov from the ruling United Russia party, was officially recorded as opposing the measure, although his “no” vote was said to have been due to a technical mistake.

The federal budget and related tax legislation will now proceed to the Federation Council, where they are expected to gain swift approval before being sent to President Vladimir Putin for his signature.

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