Russian State Duma Approves Tax Hikes And Record Spending On The Army
- 22.10.2025, 17:51
Against a backdrop of reduced spending on health care.
The State Duma of the Russian Federation on Wednesday approved the law on the federal budget for 2026-28 in the first reading.
According to the document, next year the VAT rate will be increased for the second time in the last 7 years - from 20% to 22%. According to the RF Ministry of Finance's calculations, this will bring 1.2 trillion rubles in additional revenues to the treasury, writes The Moscow Times.
A radical tax reform for small businesses will also be launched, which, according to the calculations of "Opora Rossii", will affect every tenth entrepreneur. The simplified taxation system, under which 4.4 million small companies operate, will be cut from 60 million rubles of annual income to 10 million rubles. Those who earn more will start paying VAT.
In total, according to the budget law, the Ministry of Finance plans to collect 3.2 trillion rubles of additional taxes - a total of 40.28 trillion rubles. Expenditures will increase by Br1.2 trillion, to Br44.07 trillion.
The largest expenditure item will remain "national defense": about 30% of the budget, or Br12.9 trillion, will be allocated to it. Expenditures on police, Rosgvardia, IC, FSIN ("national security") will increase by Br420 billion, up to Br3.91 trillion. In total, law enforcement agencies will "eat" 38% of the budget, or Br16.84 trillion.
Spending on support for the national economy will increase by Br414 billion, up to Br4.768 trillion; on social support of the population - by Br611 billion, up to Br7.103 trillion; on the housing and utilities system - by Br197 billion, up to Br1.996 trillion; on education - by Br167 billion, up to Br1.744 trillion.
Additional Br9.1 billion will be allocated to the state propaganda budget: its total size will reach a new record of Br146.3 billion.
It was decided to freeze spending on health care from the federal treasury - Br1.87 trillion next year against Br1.86 trillion this year. The financing of the national project "Long and Active Life" (former national project "Health Care") will be reduced by 26% to Br274.2 billion.
"Under the knife" will go the program of modernization of primary medical care (2.3 times), the federal project for the development of ambulance service (- 28%), programs to combat diabetes (-13%), cancer (-3.1%) and cardiovascular diseases (-2.5%).
In the course of preparing the budget, the Duma and the government "tried to do everything to ensure that the budget would solve all the issues facing the country and protect the interests of our citizens," said Vyacheslav Volodin, speaker of the lower house, commenting on the document.
"One of the key priorities is the country's defense capability and security. This is also provided for in the budget, and these tasks have been solved," he added.