Russian budget framework for 2026‒2028 foresees tax hikes and lots of red ink

Abstract

The latest preliminary budget framework approved by the Russian government suggests a tightening of the government’s fiscal stance. The large war deficits of recent years have complicated Russia’s finances, forcing the government to harness all parts of the economy to finance the war effort. On top of an increase in the corporate profit tax this year, regular citizens will experience a hike in the value-added tax (VAT) that takes effect at the start of next year.