Russia concealed data on the rise in public debt
Russia has passed a law allowing the government to increase government spending and debt obligations without amending the current budget law.
The State Duma of the Russian Federation supported this decision. It is noted that the new mechanism significantly simplifies the procedure for adjusting budget indicators, which previously could take several months.
According to critics, the adopted document significantly reduces the transparency of the country’s financial system and complicates public oversight of public finances.
Secrecy of Expenditures
It is reported that the new legislative changes grant the Russian government the right to borrow funds in excess of the limits set in the budget law and to automatically expand expenditures.
Previously, government officials had to submit amendments, undergo open parliamentary hearings, and adhere to regulations, which significantly delayed funding for military needs. In addition, the adopted document completely eliminates transparency in the aggressor’s financial sector. Under the changes, any adjustments to plans regarding public debt and budget expenditures will no longer be disclosed publicly and will be kept entirely confidential.
“The bill gives us greater flexibility to maneuver quickly in changing conditions, which is necessary so that we can respond to changes that are now occurring not just monthly or quarterly, but practically every day,” said Deputy Finance Minister Irina Okladnikova.
The Russian budget is rapidly shrinking
The need to lift any financial controls arose against the backdrop of a critical deterioration in Russia’s financial situation. The rapid rise in military spending to support the genocidal war against Ukraine is burning through the Kremlin’s coffers:
- In the first five months of the year, Russia’s budget deficit has already jumped to 2.6% of gross domestic product.
- This figure significantly exceeds the projected deficit of 1.6% of GDP for the entire year.
Russian Finance Minister Anton Siluanov previously confirmed that the deficit for the year will turn out to be significantly larger than forecast. Official borrowing for the current year is planned at 5.5 trillion rubles.
Last year, Russia’s domestic debt already saw a record surge due to massive military spending—it jumped by 46% at once, reaching 7 trillion rubles.
This is reported by Russian propaganda media.
Russiamay deploy up to 115,000 troops near NATO.
Despite differing political assessments, experts agree that the situation near NATO’s borders is rapidly changing, and the Baltic region remains one of the key potential hotspots for future tensions. This was reported by the Danish publication DR.
NATO ground forces have launched large-scale operations aimed at significantly strengthening the defense capabilities of the Alliance’s two newest members—Sweden and Finland.
