Russia's economy runs fifth straight budget deficit amid sanctions and Ukraine war - Cryptopolitan
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Russia is heading into its fifth straight year of running a budget deficit, as war spending and weak revenue continue to slam its finances.

cross-posted from: https://scribe.disroot.org/post/4740484

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  • Russia will run a 4.6 trillion ruble budget deficit in 2026, its fifth in a row, due to falling revenue and war spending.
  • The VAT rate will rise to 22% next year, and more companies will be forced to pay it to boost revenue.
  • Russia plans to borrow 2.2 trillion rubles and scrap tax breaks for small businesses to cover the widening gap.
  • mgnome@piefed.socialEnglish
    181·
    4 days ago

    Worth noting that Russia absolutely weaponizes it’s people’s impoverishment - many folks, who’ve signed contracts to go to war, did it because they took many loans and loan sharks were after them, or it were simply folks from remote downtrodden regions, for whom joining a war presented a chance to earn some better livelihood for their families.

    Just debt slavery all around, while head of state may well be the richest man in the world.

    • MeldrikAEnglish
      2·
      3 days ago

      Wow! I thought Denmark’s 25% was high… 🫡

      • Rednax@lemmy.worldEnglish
        4·
        3 days ago

        Hungary has a very low income tax. Hence the high VAT. Denmark has both high VAT and income tax.