Russians have been warned of possible tax hikes due to the budget deficit
Due to the worsening economic outlook in Russia, the government may be forced to either cut spending or raise taxes again.
This is according to economists surveyed by Reuters.
According to a new estimate by the Russian Ministry of Economic Development, GDP growth this year will be only 0.4%, which is significantly lower than previous forecasts and substantially below the rates of previous years. At the same time, expectations regarding the dollar exchange rate and oil production volumes have been lowered, with production potentially reaching its lowest level in the past 17 years.
Economists note that under current budget rules, the government will have to either cut spending or find additional revenue sources amounting to trillions of rubles. Among the possible options being considered is increasing the tax burden on businesses, particularly through the introduction of new fees or a tax on excess profits.
At the same time, experts warn that such steps could further worsen the state of the economy, which is already showing signs of slowing down, and some companies risk losing their financial stability.
Russia’s bond market is approachinga wave of defaults, according to intelligence reports.
The Russian government has cutits economic growth forecast for this year by two-thirds.
The Russian economy is already falling, and banks are preparing for a wave of defaults
The Russian economy ended the first quarter of 2026 with a decline for the first time in three years
